Eat meals management

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Ready to go is an all equity firm specializing in hot ready to eat meals management has estimated the front earnings before interest and taxes will be $68,000 annually forever. The present cost of equity is 14.1%. Currently, the firm has no debt but is considering borrowing $450,000 at 8% interest. The tax rate is 34%. What is the value of the unlevered firm?

Reference no: EM131557184

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