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assuming perpetual cash flows, what is the value of eqity for a firm with EBIT = 2 5 million, tax rate = 2 0 %

assuming perpetual cash flows, what is the value of eqity for a firm with EBIT =25 million, tax rate =20%, debt =100 million, cost of debt =8% and unlevered cost of capital =10%? There is a 5% probability the firm will go bankrupt in the next year and, if it is bankrupt, it will lose 30% of firm value. What is the value of the firm?

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