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1. L.A. Clothing has expected earnings before interest and taxes of $56,700, an unlevered cost of capital of 16.2 percent, and a tax rate of

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1. L.A. Clothing has expected earnings before interest and taxes of $56,700, an unlevered cost of capital of 16.2 percent, and a tax rate of 35 percent. The company also has $9,.500 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this firm? A. $222,579 B. $223,333 O $224,108 D. $230,825 E. $225,476 6, 162

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