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Magnolia Bros has no debt. Its current total value is $8 million. What will the company's value be if it sells $2 million in debt

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Magnolia Bros has no debt. Its current total value is $8 million. What will the company's value be if it sells $2 million in debt with a coupon rate of 6 percent and it has a tax rate of 30 percent? Assume all debt proceeds are used to repurchase equity. $10.00 million $8.12 million $7 40 million O $8.60 million $8.25 million

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