What is the value of firm

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Cede & Co. expects its EBIT to be $74781 every year forever. The firm can borrow at 11%. Cede currently has no debt, and its cost of equity is 22%. The tax rate is 32%. What is the value of the firm if it borrows $45,000 and uses the proceeds to repurchase shares? (Round answer to 2 decimal places. Do not round intermediate calculations)

Reference no: EM132028833

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