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You are the manager of an unlevered firm whose market value is $5,800,000. You are considering issuing $1,250,000 in debt and using these funds to

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You are the manager of an unlevered firm whose market value is $5,800,000. You are considering issuing $1,250,000 in debt and using these funds to purchase an equal amount of equity. The corporate tax rate is 21%, and the stock holders and bond holders face personal tax rates of 0% and 34% respectively. Use the Miller (1977) Model to estimate the value of the equity of the relevered firm. $5,800,000 $4,550,000 $2,805,538 $5,553,788 $4,303,788 O

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