What is the value of the firm

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Question - Jack Ltd has expected earnings before interest and taxes of $17,100 forever, an unlevered cost of capital of 12.4 percent, and debt with both a book and face value of $25,000. The debt has an annual 6 percent coupon. If the tax rate is 30 percent, what is the value of the firm?

A) $96,532

B) $104,032

C) $137,903

D) $121,532

Reference no: EM132928253

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