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F 16.4 An unlevered firm is valued at 28$. An identical firm is financed by 3,827$ debt. Tc= corporate tax rate =39% Td= personal tax

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F 16.4 An unlevered firm is valued at 28$. An identical firm is financed by 3,827$ debt. Tc= corporate tax rate =39% Td= personal tax rate on debt income =18% Ts= personal tax rate on stock income =26% What is the increase in value of this levered firm for every dollar raised in debt

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