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Determine what is the market value of the firm

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Reference no: EM132749936

MacKinnon Co. currently has EBIT of $39,000 and is all equity financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 23% of taxable income. The cost of equity for this firm is 16%.

Problem 1: What is the market value of the firm? Enter your answer rounded to two decimal places.

Reference no: EM132749936

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