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A BURGER restaurant has a debt-to-equity ratio of 20% and pays $14k in interest per year. The cost of the company's leveraged equity is 17%.
A BURGER restaurant has a debt-to-equity ratio of 20% and pays $14k in interest per year. The cost of the company's leveraged equity is 17%. Each shop is expected to generate $400k in yearly revenue, $225k in annual cost of goods sold, and $45k in annual general and administrative expenditures. These cash flows are predicted to be unchanged, and the corporation tax rate is set at 24%. Determine the value of the company's equity using the flow to equity method. What is the company's entire worth?
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