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Moose Pastures Inc is an all - equity firm with a value of $ 2 0 million. The firm has a tax rate of 3
Moose Pastures Inc is an allequity firm with a value of $ million. The firm has a tax rate of Management at MPI wishes to replace $ million of its equity with $ million of permanent debt. By increasing its leverage, the PV of the expected costs of financial distress would rise from to $ million. What is the value of the MPI after the recapitalization?
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