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A company has an expected EBIT of $ 4 3 5 , 0 0 0 in perpetuity and a tax rate of 2 1 percent.

A company has an expected EBIT of $435,000 in perpetuity and a tax rate of 21 percent. The company has $700,000 in outstanding debt at a pretax cost of debt of 6.2 percent, and its unlevered cost of capital is 10.8 percent. What is the value of the firm according to MM Proposition I with taxes?

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