Question: Question 16 5 points Save Answer Hanover Tech is currently an all equity firm that has 320,000 shares outstanding with a market price of 24

Question 16 5 points Save Answer Hanover Tech is currently an all equity firm that has 320,000 shares outstanding with a market price of 24 a share. The current cost of equity is 15.4 per cent and the tax rate is 36 per cent. The firm is considering adding 1.2 million of debt with a coupon rate of 6 per cent to its capital structure. The debt will be sold at par value. What is the levered value of the equity? Show your steps. For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac). BI. Paragraph Arial 14px A 2 I % Q6 3 X X 8211 1 " S2 A BE (1) V v !!! v

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