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Proposition I (With Taxes) Reserve Inc. is an unlevered firm. The company is planning to borrow $2 million at an interest rate of 10%. The

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Proposition I (With Taxes) Reserve Inc. is an unlevered firm. The company is planning to borrow $2 million at an interest rate of 10%. The loan will be repaid in equal installments over the next two years. The tax rate is 25%. What is the increase in the value of the company after taking out the loan? (2 pts) Proposition I (With Taxes) Reserve Inc. is an unlevered firm. The company is planning to borrow $2 million at an interest rate of 10%. The loan will be repaid in equal installments over the next two years. The tax rate is 25%. What is the increase in the value of the company after taking out the loan? (2 pts)

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