Identical assets that generate identical cash flows

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Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. With has 2 million shares outstanding and $12 million dollars in debt at an interest rate of 5%. There is a 20% corporate tax rate. The stock price of with is closest to:

Reference no: EM132066405

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