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An all-equity firm has an EBIT of $2000 every year in the future. The WACC is 10%. What is the value of the firm? (Tax

An all-equity firm has an EBIT of $2000 every year in the future. The WACC is 10%. What is the value of the firm? (Tax rate 30%) If the firm has debt outstanding of $4000 in face value, what is the value of the firm? (ignore bankruptcy cost) What is the expected bankruptcy cost if the firm value is $15000?

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