What is the company wacc and what is value of the ?rm

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Reference no: EM133344891

Question: Linkin Park Corporation expects its EBIT to be $1,705,000 every year forever. The ?rm can borrow at 14% and its cost of equity is 25%. Its debt-to-equity ratio is 1. If the tax rate is 35%:

(a) What is the company's WACC?

(b) What is value1 of the ?rm?

Reference no: EM133344891

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