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Business, 06.05.2020 23:16 3peak101

Gail's Dance Studio is currently an all equity firm that has 80,000 shares of stock outstanding with a market price of $42 per share. Gail is considering adding $1 million of debt with a coupon rate of 8% to her capital structure. Gail pays 34% tax rate. What is the levered value of the company, according to the MM proposition with taxes?

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