Calculate the value of the levered firm

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The ABC corp. is expected to have the earnings before interest and taxes of $60,000 and the unlevered cost of capital of the company is 12%. The corporate tax rate is 30%. If the company has issued a debt of $20,000 at par with annual coupon rate of 10%, what is the value of the levered firm?

Calculate the value of the levered firm?

Reference no: EM132632720

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