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What is the value of the levered firm

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An unlevered firm has a cost of capital of 13.8 percent and earnings before interest and taxes of $214,560. Assume the firm borrows $430,000 at an interest rate of 5.85 percent. The applicable tax rate is 35 percent. What is the value of the levered firm?

 

 

Reference no: EM132739841

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