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Marcos & Sons has no debt. Its current total value is $13 million. What will the company's value be if it sells $5 million in

Marcos & Sons has no debt. Its current total value is $13 million. What will the company's value be if it sells $5 million in debt and has a tax rate of 35 percent? Assume all debt proceeds are used to repurchase equity.

$16.25 million$11.25 million$14.75 million$13.00 million$18.00 million

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