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The Blast Company is financed entirely with equity. The company is considering a loan of $1.84 million. The loan will be repaid in equal principal

The Blast Company is financed entirely with equity. The company is considering a loan of $1.84 million. The loan will be repaid in equal principal installments over the next two years, and it has an interest rate of 9 percent. The companys tax rate is 40 percent. According to MM Proposition I with taxes, what would be the increase in the value of the company after the loan? (Enter your answer in dollars and round your answer to 2 decimal places)

Increase in the value $

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Mathematical Applications for the Management Life and Social Sciences

Authors: Ronald J. Harshbarger, James J. Reynolds

11th edition

978-1305108042

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