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A firm produces EBIT of $30,000 in perpetuity. Assume that corporate taxes are 30%, and there are no personal taxes. The required rate of return

A firm produces EBIT of $30,000 in perpetuity. Assume that corporate taxes are 30%, and there are no personal taxes. The required rate of return on equity is 10%, and the firm is unlevered. What is the value of, if instead of being an unlevered firm, the firm has $100,000 debt?

a. 260,000

b. 210,000

c. 190,000

d. 240,000

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