Solution-Value of the firm according to m-m proposition

Value of the firm according to m-m proposition

Reference no: EM131041972

Tool Manufacturing has an expected EBIT of $99,000 in perpetuity and a tax rate of 35 percent. The firm has $110,000 in outstanding debt at an interest rate of 7.5 percent, and its unlevered cost of capital is 13 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.)

Reference no: EM131041972

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Value of the firm according to m-m proposition

Reference no: EM131041972

Reference no: EM131041972

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