Question: Hello, please write out the explanation and the formulas used so i can see the steps. Vatsug, Inc. is an unlevered firm that has 50,000

Hello, please write out the explanation and the formulas used so i can see the steps.

Vatsug, Inc. is an unlevered firm that has 50,000 shares outstanding, each

priced at $40. The firm decides to immediately borrow $1,000,000 for 10 years at a

6% interest rate. Assuming a marginal tax rate of 34%, what is your estimate of

Vatsug's value as a levered firm?

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