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Save Amer Question 14 10 points Firm A is currently 100% equity financed, and it has the following balance sheet: Assets Debt 100,000 Equity 100,000

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Save Amer Question 14 10 points Firm A is currently 100% equity financed, and it has the following balance sheet: Assets Debt 100,000 Equity 100,000 Suppose Firm A wants to invest in a project that has total present value equal to $50,000. Using MM propositions with taxes, and assuming that the corporate tax rate is 40%, what would be the total value of Firm A (value of assets) if it used debt to finance the project? 0 S150,000 $130,000 $50,000 $100,000 $170,000

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