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Joe's leisure time sports is an unlevered firm with an aftertax net income of $78,400. the unlevered cost of capital is 11.4 percent and the tax rate is 35 percent. what is the value of this firm?
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Joe's leisure time sports is an unlevered firm with an aftertax net income of $78,400. the unlevered cost of capital is 11.4 percent and the tax rate is 35 percent. what is the value of this firm?

User SlimeBaron
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The unlevered cost of capital is 11.4 percent for this case. Therefore the value of this firm will be Vu = 78400 / 0.114 = 687719.2982 $. The correct answer is 687719.2982 $
User Daniel Budick
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