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A firm is expected to generate $10M in sales next year. The annual costs are expected to be 20% of sales. The tax rate is

A firm is expected to generate $10M in sales next year. The annual costs are expected to be 20% of sales. The tax rate is 30%. The after-tax cash flow is expected to grow at 2% per year forever. The firm has $30M of perpetual debt. The unlevered cost of capital is 10% and the cost of debt is 5%. Find the value of the firm.

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