Question
ABF Corp. has expected earnings before interest and taxes of $3,700, an unlevered cost of capital of 15.4 percent and a tax rate of 22
ABF Corp. has expected earnings before interest and taxes of $3,700, an unlevered cost of capital of 15.4 percent and a tax rate of 22 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm?
A. $19,312 B. $18,168 C. $18,740 D. $24,598
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The Complete Guide To Capital Markets For Quantitative Professionals
Authors: Alex Kuznetsov
1st Edition
0071468293, 978-0071468299
