The debt is selling at par value-what is the value of firm

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L.A. Clothing has expected earnings before interest and taxes of $2,300, an unlevered cost of capital of 14 percent and a tax rate of 34 percent. The company also has $3,100 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?

Reference no: EM131356123

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