Compute the market value of the firm

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Reference no: EM131878408

Consider a firm which is not growing. All operating results are the same, year after year. From the following information, compute the market value of the firm, according to the Miller-Modigliani method. Assume there are no nonoperating assets. Ignore mid-year discounting.

NOPAT = 600

Interest expense = 50

Interest rate on the debt = 4%

Unlevered cost of equity for industry risk = 8%

Tax rate = 34%

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Reference no: EM131878408

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