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MV Pid Corporation has debt with a coupon rate of 5% and a yield to maturity of 7%, a cost of equity of 15% and

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MV Pid Corporation has debt with a coupon rate of 5% and a yield to maturity of 7%, a cost of equity of 15% and a cost of preferred stock of 10%. Its debt has a market value of $170 million and a book value of $110 million. The common equity has a book value of $80 million and the preferred stock has a book value of $60 million. The prelerred stock is currently trading at a 25% premium over its book value per share, while the common stock trades at $20 per share, with 8 milion shares outstanding The tax rate is 30%. What is this firm's value of debt, D (for use in the weights)? A. $60 million B. $130 million C. $B0 milion D. $110 milion E. $180 million F. $150 milion G. $170 million H. $160 million 1. $140 million

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