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Use the following information to value a firm's assets. Assume the following: the market value of the firm's assets is expected to remain constant over

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Use the following information to value a firm's assets. Assume the following: the market value of the firm's assets is expected to remain constant over time so the firm doesn't grow and can be valued as a level perpetuity, the firm has a constant debt-to-assets ratio, the bonds are priced at par, and the stock's expected capital returns are zero. Relevant data: The number of shares on issue is 1 million and the number of bonds is 500,000 The constant annual dividend per share is $4 The bonds have an annual fixed coupon payment of $5 10-year government bonds have a yield of 2.5% and the market risk premium is 6% The beta of levered equity is 0.7 The beta of the bonds is 1.2 Which of the following is the market value of the levered firm's assets? O a. $69.2 million O b. $92.1 million O c. $54.8 million O d. $100.6 million O e $85.5 million Clear my choice

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