Find what value of the company according to mm proposition

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Tool Manufacturing has an expected EBIT of $64,000 in perpetuity and a tax rate of 21 percent. The company has $116,500 in outstanding debt at an interest rate of 6.1 percent and its unlevered cost of capital is 11 percent.

Problem 1: What is the value of the company according to MM Proposition with taxes?

Reference no: EM132721900

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