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XYZ is an all equity financed firm with a constant EBIT of $1.75 million. The company does not pay any taxes currently. The company has

XYZ is an all equity financed firm with a constant EBIT of $1.75 million. The company does not pay any taxes currently. The company has a cost of equity of 20% and 500,000 shares outstanding.

Determine the value of the company with its current capital structure.

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