23. The Boston Firm is unlevered with assets of $30 million and EBIT of $6 million. If the firm's tax rate is 34%, calculate both its after-tax cash flow and its value given a risk adjusted discount rate of 12%. A) $2,400,000; $ 2,400,000 B) $2,400,000; $30,000,000 C) $2,400,000; $33,000,000 M $3.960.000; $30,000,000 E $3,960,000; $33,000,000 A Use the following to answer questions 24-25: The Windsor Company has perpetual EBIT of $5,000. It has no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. There are 430 shares outstanding. Windsor has announced that it will borrow $3,750 in perpetual debt at 8% and use the proceeds to buy up stock. 24. What is the value of the Windsor Co. before the announcement of the bond issuance and stock buyback? A) $20,000 B) $33,000 C) $37,500 D) 62,500 E) Insufficient information. 25. What is the value of Windsor Co. after the announcement of the recapitalization? A) $18,500 B) $21,500 C) $35,250 D) $41,250 E) $43,000