Calculate the value of the firm

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Reference no: EM133273717

Question - Blueline Company has an unleveraged value of $3,250,000, $1,500,000 in debt, and a corporate tax rate of 34%. In addition, the firm's bankruptcy costs have been estimated at $800,000. If the probability of bankruptcy is 10%, calculate the value of the firm.

Reference no: EM133273717

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