An unlevered firm has a value of $650 million. An otherwise identical but levered firm has $40 million in

An unlevered firm has a value of $650 million. An otherwise identical but levered firm has $40 million in debt. Assuming the corporate tax rate is 40%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000.

VL = VU + TD= $650 + 0.40($40) = $666 million.