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King, Incorporated has debt outstanding with a face value of $6.4 million.The value of the firm if it were entirely financed by equity would be

King, Incorporated has debt outstanding with a face value of $6.4 million.The value of the firm if it were entirely financed by equity would be $31.4 million. The company also has 435,000 shares of stock outstanding that sell at a price of $60 per share. The corporate tax rate is 24 percent. What is the decrease in the value of the company due to the expected bankruptcy costs?

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