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What is the value of the levered firm

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An unlevered firm has a cost of capital of 15% and earnings before interest and taxes of $128025. A levered firm with the same operations and assets has both a book value and a face value of debt of $764245 with a 9% annual coupon. The applicable tax rate is 35%.

What is the value of the levered firm? (Round answer to 0 decimal places, do not round intermediate calculations)

Reference no: EM131967308

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