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Unleveraged cost of capital
Course:- Financial Management
Reference No.:- EM131339047





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Assignment Help >> 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.)




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