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How much will a firm need in cash flow before tax and interest to satisfy debt holders and equity holders if: the tax rate is

How much will a firm need in cash flow before tax and interest to satisfy debt holders and equity holders if: the tax rate is 40%, there is $10 million in common stock requiring a 12% return, and $6 million in bonds requiring an 8% return?

$2,800,000

$1,392,000

$1,488,000

$2,480,000

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