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The Sandhill Corporation is currently valued at $ 1 , 1 0 0 million, but management wants to completely pay off its perpetual debt of

The Sandhill Corporation is currently valued at $1,100
million, but management wants to completely pay off its
perpetual debt of $220 million. Sandhill is subject to a 30
percent marginal tax rate. If Sandhill pays off its debt,
what will the total value of its equity be?(Enter answer
in millions.)
Total value
of equity
million
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