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2. Strider Publishing Company, an all-equity firm, expects perpetual earnings before interest and taxes (EBIT) of $2.5 million per year. Strider's after-tax, all-equity discount rate

2. Strider Publishing Company, an all-equity firm, expects perpetual earnings before interest and taxes (EBIT) of $2.5 million per year. Strider's after-tax, all-equity discount rate is 20 percent. The firm is subject to a 34 percent corporate tax rate. a. What is the value of Strider Publishing?

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