Question: Question 107 points) Dabey Electronics is currently an all equity firm that has 70,000 shares of stock done with me price of 542 a share.

Question 107 points) Dabey Electronics is currently an all equity firm that has 70,000 shares of stock done with me price of 542 a share. The current cost of equity is 12% and the tax rate is 34% The company is coordons adding $1 million of debt with a coupon rate of 8% to her capital structure. The debt will be sold at value. What is the levered value of the equity? $2.70 million $2.28 million $2.94 million $3.28 million $1.94 million

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