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Entrepreneur starting a biotech company. If research is successful the technology can be sold for $30 million. If unsuccessful, it will be worth nothing. To fund your research you need to raise $2 million. Investors are willing to provide you with $2 million for 50% of the unlevered equity What is the market value of the firm without leverage?

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1. Entrepreneur starting a biotech company. If research is successful the technology can be sold for $30 million. If unsuccessful, it will be worth nothing. To fund your research you need to raise $2 million. Investors are willing to provide you with $2 million for 50% of the unlevered equity What is the market value of the firm without leverage?





 
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