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Burger King has an unlevered cost of capital of 10%, a tax rate of 30 percent, and expected earnings before interest and taxes of $50,000.

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Burger King has an unlevered cost of capital of 10%, a tax rate of 30 percent, and expected earnings before interest and taxes of $50,000. The company has $30,000 in bonds outstanding. The bond has an YTM of 8%. PLEASE BE SURE TO SHOW YOUR WORK VERY CLEARLY IF YOU WANT TO BE ELIGIBLE FOR PARTIAL CREDIT. 1) What is the market value of Burger King? 2) What is the market value of equity of Burger King? 3) What is the cost of equity of Burger King? 4) What is the WACC of Burger King? How does this compare to the unlevered WACC? Please explain in 1-2 sentences (i.e. provide reason for difference or lack of difference)

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