Assume a firm maintains debt at a permanent $2.3 million level at an interest rate of 7%. The corporate tax rate is 35% and there is no chance of financial distress. What would be the unlevered value of this firm if the levered value is $2.28 million?

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The Answer of Assume a firm maintains debt at a permanent $2.3 million level at an interest rate of 7%. The corporate tax rate is 35% and there is no chance of financial distress. What would be the unlevered value of this firm if the levered value is $2.28 million?

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