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Shenvi Real Estate is all-equity firm is valued at $2,405,277. The firm is considering changing to a debt-equity ratio of 0,42 using perpetual debt with

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Shenvi Real Estate is all-equity firm is valued at $2,405,277. The firm is considering changing to a debt-equity ratio of 0,42 using perpetual debt with an annual cost of 4.75%. Assume there are no income taxes. According to MEM Proposition I, if Shenvi makes the change, what will be the new value of the firm? $5.726.850 $4,798,528 $5,808,744 $2,405,277 $7,203,805

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