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Question 13: A firm is currently financed with 50% equity and 50% debt. The firm generates perpetual earnings after taxes and interest rates of 10$

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Question 13: A firm is currently financed with 50% equity and 50% debt. The firm generates perpetual earnings after taxes and interest rates of 10$ million per year. The firms cost of equity is 14% its cost of debt is 7%, and it has a tax rate of 30%. What is the value of the levered firm

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