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What is the value of this levered firm

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Reference no: EM132908358

Kristo Koffee has expected earnings before interest and taxes of $34,500, an un-levered cost of equity of 14%, and debt with both a book and face value of $20,000. The debt has an annual 7% coupon. The tax rate is 35%. What is the value of this levered firm? Assume no cost of financial distress/bankruptcy.

Reference no: EM132908358

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