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Bills Co. has EBIT of $60,000 and market value debt of $150,000 outstanding with a 9% coupon rate. The cost of equity for an

Bills Co. has EBIT of $60,000 and market value debt of $150,000 outstanding with a 9% coupon rate. The cost of equity for an all equity firm would be 10%. Bills has a 30% corporate tax rate. Investors face a 16% tax rate on debt receipts and a 12% rate on equity. What is the value of Bills? O $312,008 O $326,022 O $460,000 $482,080

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