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Question: MM Model with Zero Taxes

An unlevered firm has a value of $450 million. An otherwise identical but levered firm has $25 million in debt. Under the MM zero-tax model, what is the value of the levered firm? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000.

Basic Finance, Finance

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  • Reference No.:- M92839153

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