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Business, 19.12.2019 01:31 zitterkoph

Alexandria's dance studio is currently an all equity firm that has 60,000 shares of stock outstanding with a market price of $24 a share. the current cost of equity is 11% and the tax rate is 40%. alexandria is considering adding $2 million of debt with a coupon rate of 7% to her capital structure. the debt will be sold at par value. what is the levered value of the equity?

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