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Blues Industries has an EBIT of $12 million per year forecast in perpetuity. Blues cost of equity is 15% and its tax rate is 28%.
Blues Industries has an EBIT of $12 million per year forecast in perpetuity. Blues cost of equity is 15% and its tax rate is 28%. If Blues Industries borrows $30 million, what will be the value of the firm?
Answers:
$66.0 million
$30.8 million
$76.4 million
$80.0 million
$57.6 million
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