What is the value of levered equity

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Relay Inc. keeps a constant debt to equity ratio policy equal to 0.8 and its wacc is 13%. The company has an expected net income equal to $12,054,021 for next year and its assets are completely depreciated. The amount of interest to be paid next year is $1,125,000 and the expected EBITDA of the company is constant and perpetual.

If the corporate tax rate is 34%o what is the value of levered equity?

Reference no: EM131185124

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