17 Firm Value Hoy plc has a profit before interest and taxes of 900,000 per year that...

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17 Firm Value Hoy plc has a profit before interest and taxes of £900,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 17 per cent, and the corporate tax rate is 20 per cent. The company also has a perpetual bond issue outstanding with a market value of £2 million.

What is the value of the company?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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