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Please solve the question above, thank you! Sinclair, Inc. is a levered firm with assets valued at $10,000 and has debt issued at 10% interest.

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Please solve the question above, thank you!

Sinclair, Inc. is a levered firm with assets valued at $10,000 and has debt issued at 10% interest. Sinclair pays tax at the rate of 34%. The firm faces EBIT scenarios of recession and boom. Assume that firms with zero or negative NIBT pay zero taxes. If Sinclair's leverage factor is 4. what amount comes closest to the amount of debt issued? a. $6, 500 b. $4,000 c. $7, 500 d. $5,000 e. $2, 500

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