>> Financial Management
Tool Manufacturing has an expected EBIT of $60,000 in perpetuity and a tax rate of 35 percent. The firm has $115,000 in outstanding debt at an interest rate of 7.2 percent, and its unleveraged cost of capital is 10 percent.
What is the value of the firm according to M&M Proposition I with taxes? _______________
(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)