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KFC is currently an all equity firm that has 40,000 shares outstanding with a market price of 40 a share. The current cost of equity

KFC is currently an all equity firm that has 40,000 shares outstanding with a market price of 40 a share. The current cost of equity is 11% and the tax rate is 30%. KFC is considering adding 1.8 million of debt with a coupon rate of 8% to her capital structure. The debt will be sold at par value. What is the levered value of the equity?

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