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assett Fruit Farm expects its EBIT to be $409,000 a year forever. Currently, the firm has no debt. The cost of equity is 14.1 percent and the tax rate is 35 percent. The company is in the process of issuing
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assett Fruit Farm expects its EBIT to be $409,000 a year forever. Currently, the firm has no debt. The cost of equity is 14.1 percent and the tax rate is 35 percent. The company is in the process of issuing $1.9 million worth of bonds at par that carry an annual coupon of 5.7 percent. What is the unlevered value of the firm

User Jason Ridge
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1 vote

Answer:

$18,85,461

Step-by-step explanation:

(409000*0.65)/0.141=1885461

User Jesse Kochis
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