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What is the value of the firm-jellybean co

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Reference no: EM132491653

Jellybean Co. expects EBIT of $250,000 next year, and expects earnings to grow at a rate of 2% per year indefinitely. Jellybean Co. currently has no debt and its cost of equity is 20%. The firm can borrow at 7%. The corporate tax rate is 32%.

What is the value of the firm? Enter your answer rounded to two decimal places

Reference no: EM132491653

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