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The current value of a firm is 34,500 and it is 100% equity financed. The firm is considering restructuring so that it is 90% debt
The current value of a firm is 34,500 and it is 100% equity financed. The firm is considering restructuring so that it is 90% debt financed. If the firm's corporate tax rate is 0.5, what will be the new value of the firm under the MM theory without taxes, transactions costs, or the possibility of bankruptcy?
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