Levered value of firm, Kline Construction is an all-equity

Levered value of firm

Reference no: EM1336763

Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $879,000. The current cost of equity is 18.3 percent and the tax rate is 34 percent. The company is in the process of issuing $6.2 million of 8.5 percent annual coupon bonds at par. What is the levered value of the firm?

Reference no: EM1336763

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