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4 . Kline Construction is an all - equity firm that has projected perpetual EBIT of $ 3 5 2 , 0 0 0 .

4. Kline Construction is an all-equity firm that has projected perpetual EBIT of $352,000. The current cost of equity is 13.1 percent and the tax rate is 21 percent. The company is in the process of issuing $968,000 worth of perpetual bonds with an annual coupon rate of 6.1 percent at par. What is the value of the levered firm?

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