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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Tool Manufacturing has an expected EBIT of $97,000 in perpetuity and a tax rate of 35 percent. The firm has $120,000 in outstanding debt at an interest rate of 7.30 percent, and its unlevered cost of capital is 13 percent.
 Â
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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)) |
| Â Â Value of the firm | $Â Â Â |
Â
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