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Paragon Corp. plans to borrow $46 million of perpetual debt and use the money to repurchase equity. What will happen to the value of the

Paragon Corp. plans to borrow $46 million of perpetual debt and use the money to repurchase equity. What will happen to the value of the firm? The tax rate is 26%.

the value will increase by $14.4M

the value will increase by $15.2M

the value will increase by $12M

the value will increase by $13.8M

the value will increase by $15.2M

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