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Jason Processed Foods is currently valued at $520 million. Jason will repurchase $130 million of its equity by issuing perpetual debt at an annual interest
Jason Processed Foods is currently valued at $520 million. Jason will repurchase $130 million of its equity by issuing perpetual debt at an annual interest rate of 10 percent. Jason is subject to a 30 percent marginal tax rate. If the Modigliani and Miller assumptions apply, except the assumption that there are no taxes, what will the value of Jason be after the recapitalization? (Enter amount in dollars.)
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