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What is the total value for a firm with $1 million in equity, $2 million in permanent debt at a 10% interest rate, and a

What is the total value for a firm with $1 million in equity, $2 million in permanent debt at a 10% interest rate, and a 35% tax rate if MM I is modified to recognize corporate taxes?

Value increases by $700,000

Value increases by $1,700,000

Value increases by $1,350,000

Value increases by $350,000

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