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Wolfgang can borrow at 12.25 percent. The company currently has no debt, and the cost of equity is 15.5 percent. The current value of the

Wolfgang can borrow at 12.25 percent. The company currently has no debt, and the cost of equity is 15.5 percent. The current value of the firm is $679,000. The corporate tax rate is 40 percent. What will the value be if the company borrows $228,000 and uses the proceeds to repurchase shares?

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