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Best Foods, Inc. has an unlevered cost of capital of 12 percent. The company generates earnings before interest and taxes of $6,000 per year and

Best Foods, Inc. has an unlevered cost of capital of 12 percent. The company generates earnings before interest and taxes of $6,000 per year and has a tax rate of 35 percent. What will the value of the firm be if the firm adds $20,000 of debt to its capital structure?

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