Value of unlevered firm is 200 million marginal tax rate is, Ask an Expert

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Value of unlevered firm is $200 million. Marginal tax rate is 40%. This firm is using the $80 million debt. Personal tax rate for income from debt is 30%. Personal tax rate for income from the stock is 12%. Determine the value of the levered firm?

A. $232 million

B. $280 million

C. $120 million

D. $220 million

E. None of the above

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Category:- Basic Finance
Reference No.:- M91145406

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