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Farmington Company can borrow at 6 . 9 percent. The company currently has no debt and the cost of equity is 1 1 . 3

Farmington Company can borrow at 6.9 percent. The company currently has no debt and the cost of equity is 11.3 percent. The current value of the firm is $645,000. The corporate tax rate is 25 percent. What will the value be if the company borrows $360,000 and uses the proceeds to repurchase shares?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.

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