What is the value of the firm according

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Tool Manufacturing has an expected EBIT of $101,000 in perpetuity and a tax rate of 35 percent. The firm has $175,000 in outstanding debt at an interest rate of 8.7 percent, and its unlevered cost of capital is 15 percent.

What is the value of the firm according to M&M Proposition I with taxes? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Value of the firm $

Reference no: EM131978978

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