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A company just issued $287000 of perpetual 5% debt and used the proceeds to repurchase stock. The company expects to generate 117000 of EBIT in

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A company just issued $287000 of perpetual 5% debt and used the proceeds to repurchase stock. The company expects to generate 117000 of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of capital is 15% and the tax rate is 35%. Use APV method to calculate the value of the company with leverage. Your

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