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Where D is measured in $Millions (and hence the costs of distress are also expressed in $Million). Assume that the interest payments on the corporation

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Where D is measured in $Millions (and hence the costs of distress are also expressed in $Million). Assume that the interest payments on the corporation are tax deductible (with no limit). Also assume the corporations have very large EBIT, so the tax benefits of debt increase (potentially indefinitely) for higher levels of debt. a. What is the level of perpetual debt in the corporation that achieves the maximum value of the firm? (10 pts)

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