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Suppose that your firm's current unlevered value, vis $800,000, and its marginal corporate tax rate is 21 percent. Also, you model the firm's PV of

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Suppose that your firm's current unlevered value, vis $800,000, and its marginal corporate tax rate is 21 percent. Also, you model the firm's PV of financial distress as a function of its debt level according to the relation PV of financial distress - 800,000 - (D/V) 2. What is the firm's levered value if it issues $200.000 of perpetual debt to buy back stock

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