What will be the value of the company be

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Question - Hunter Corporation expects an EBIT of $43,613 every year forever. The company currently has no debt and its cost of equity is 10.79%. The tax rate is 29%. Suppose the company can borrow at 10.7%. What will be the value of the company be if it takes on debt equal to 52% of its unlevered value?

Reference no: EM132925357

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