Find the value of the levered firm

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Reference no: EM132036133

An unlevered firm has a value of $800 million. An otherwise identical but levered firm has $120 million in debt. Under the Miller model, what is the value of the levered firm if the corporate tax rate is 40%, the personal tax rate on equity is 25%, and the personal tax rate on debt is 30%? Enter your answer in millions.

For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000.

Do not round intermediate calculations. Round your answer to two decimal places. $ million

Reference no: EM132036133

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