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Bergenfield, Inc., is an all-equity firm that has projected perpetual EBIT of $141,000 per year. The cost of equity is 10.3 percent and the tax
Bergenfield, Inc., is an all-equity firm that has projected perpetual EBIT of $141,000 per year. The cost of equity is 10.3 percent and the tax rate is 34 percent. The firm can borrow perpetual debt at 5.7 percent. Currently, the firm is considering converting to a debt-equity ratio of .51. What is the firm's levered value? Multiple Choice $903,495 $1,007,248 O) $813,146 $1,084,728 $955,371
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