The shareholders of Company A are concerned that the company has taken on too much debt and have come to you for advice. The companys unleveraged value is $6,500,000, and it recently borrowed $1,800,000. In the event that the company goes bankrupt, bankruptcy costs have been estimated at $700,000. If the probability of bankruptcy is 12%, and the company pays tax at 35% calculate the value of the firm and advise the shareholders accordingly. chegg