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A firm has a pre-tax cost of debt of 7%, a debt to capital ratio of 35%, total debt of $2,500, 25% tax rate,

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A firm has a pre-tax cost of debt of 7%, a debt to capital ratio of 35%, total debt of $2,500, 25% tax rate, perpetuity growth of 6%, exit multiple of 9, beta = 1.2, risk-free rate=4%, market risk premium = 8%, and the following cash flows: Year 1 EBITDA $1800 FCF $500 2 3 $2200 $2600 $625 $840 Using the year 3 exit multiple of 9 times EBITDA, determine the total enterprise value of this firm today.

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