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Innovation Corp is unlevered and is considering to borrow $4.8 million with an interest rate of 6%. The loan will be repaid in equal principal
Innovation Corp is unlevered and is considering to borrow $4.8 million with an interest rate of 6%. The loan will be repaid in equal principal installments over the next 2 years. Suppose the tax rate is 22%, according to MM proposition, what would be the increase in value of the firm after the loan?
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