Find firm value compared to franklin

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Problem 1: Delta Mills and Franklin Mills are identical firms except for their capital structures. Delta is an unlevered firm with $680,000 of equity. Franklin is a levered firm. Both Delta and Franklin have an expected EBIT of $84,000. Delta Mills has a ________ WACC than Franklin Mills and a ______ firm value compared to Franklin. (Use the words 'higher' and (or) 'lower' to fill the blanks and complete the sentence)

Reference no: EM132663758

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