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Buffalo Blue Corps earnings before taxes are $5,200. Their tax rate is 21% and the have an unlevered cost of equity of 12.5%. Buffalo Blue
Buffalo Blue Corps earnings before taxes are $5,200. Their tax rate is 21% and the have an unlevered cost of equity of 12.5%. Buffalo Blue has $2,000 worth of debt outstanding at a rate of 7.5%. The debt is trading at face value. What is the value of the firm?
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