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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 2 million and the number of bonds is 1 million The constant annual dividend per share is $5 The bonds have an annual fixed coupon payment of $4 10-year government bonds have a yield of 3% and the market risk premium is 5% The beta of levered equity is 1.6 The beta of the bonds is 1.3 Which of the following is the market value of the levered firm's assets? O a. $112.6 million O b. $133.0 million O c. $93.2 million O d. $140.9 million O e. $102.4 million

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