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An unlevered company with a cost of equity of 16% expects to generate $2 million in earnings before interest and taxes (EBIT) each year into

An unlevered company with a cost of equity of 16% expects to generate $2 million in earnings before interest and taxes (EBIT) each year into perpetuity. The firm pays a tax rate of 30%. Based on its after-tax earnings and cost of equity, what is the value of the firm?

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