What is the unlevered value of the firm in millions

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A company is an all-equity firm that has projected earnings before interest and taxes (EBIT) of $497,000 forever. The current cost of equity is 16% and the tax rate is 34%. The company is in the process of issuing $1.5 million of bonds at par that carry a 6% annual coupon. What is the unlevered value of the firm (in millions)?

Reference no: EM13334935

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