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What is value of the firm in levered and unlevered situation

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Reference no: EM132572022

Question - The Cinnamon Cookies Company has an unlevered cost of capital of 18% and a tax rate of 35%. The expected EBIT is $2,500. The company has $5,000 of debt which is selling at par. The coupon rate is 12%. What is the value of the firm in both levered and unlevered situation?

Reference no: EM132572022

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