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The total value of a levered firm is equal to $1 million. Assuming that the total value of an equivalent firm except for the fact

The total value of a levered firm is equal to $1 million. Assuming that the total value of an equivalent firm except for the fact that is unlevered is $0.8 million and that the tax rate is 30%, what is the value of the debt for the levered firm?

a.$0.20 million

b.$0.30 million

c.$0.67 million

d.$0.24 million

e.$0.50 million

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