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Acme Industries, Inc. has expected perpetual earnings before interest and taxes of $1,300, an unlevered cost of capital of 11 percent, and a tax rate
Acme Industries, Inc. has expected perpetual earnings before interest and taxes of $1,300, an unlevered cost of capital of 11 percent, and a tax rate of 21 percent. The company also has $5,000 of perpetual debt with a coupon rate of 6 percent. The debt islling at par value. What is the value of this firm? $17,700 $12,955 $15,585 $10,386 $12,115
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