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What is the value of the firm

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Question - Dutch Dreams International Ice Cream expects to earn $365,000 in perpetuity before interest and taxes from its line of gourmet Icre Cream. The company has a debt to assets ratio of 40%. The cost of debt is 10%. If the company had no debt, its cost of capital would have been 15%. The firm's tax rate is 30%. What is the value of the firm? The value of its equity? The required rate of return on equity? and the weighted average costs of capital?

Reference no: EM132815853

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