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You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $25 million. If your research is

You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $25 million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $4 million.

Investors are willing to provide you with the capital in exchange for 45% of the unlevered equity in the firm. What is the total market value of the firm without leverage?

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