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Maestro Tech is currently an all-equity financed company that has 710,000 shares outstanding with a market price of $13 a share. The corporate tax rate
Maestro Tech is currently an all-equity financed company that has 710,000 shares outstanding with a market price of $13 a share. The corporate tax rate is 35 percent and there is no bankruptcy risk. The company is considering adding $3.2 million of debt to its capital structure. EBIT of the firm will not change as a result of debt issuance. What is the value of the levered firm? O A $3.4 million B. $7.15 million O $6.92 million OD. $14.16 million E $10.35 million
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