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MM Model with Zero Taxes $ billion eBook MM Model with Zero Taxes Quillpen Company is unlevered and has a value of $60 billion. An

image text in transcribed MM Model with Zero Taxes $ billion

eBook MM Model with Zero Taxes Quillpen Company is unlevered and has a value of $60 billion. An otherwise identical but levered firm finances 25% of its capital structure with debt. Under the MM zero-tax model, what is the value of the levered firm? Enter your answer in billions. For example, an answer of Sl billion should be entered as 1, not 1,000,000,000. Round your answer to the nearest whole number. billion

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