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Question 2 (1 point) Consider a firm AAA that has no debt, is expected to generate earnings before Interest and taxes (EBIT) of $10 million

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Question 2 (1 point) Consider a firm AAA that has no debt, is expected to generate earnings before Interest and taxes (EBIT) of $10 million a year, each year, forever, and has a tax rate of 30%. Now, consider a firm BBB that is identical to firm AAA in all ways except that firm BBB has taken on some debt. Specifically, firm BBB has $30 million in debt What is the total value of firm BBB relative to that of firm AAA? Round all Intermediate calculations to 6 decimal points. Your final answer should be within $5 of the correct answer choke. Firm BBB is $6 million less valuable than firm AAA. Firm BBB is 59 million more valuable than firm AAA Firm BBB is $6 million more valuable than firm AAA. Firm BBB is $9 million less valuable than firm AAA

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