Question
CB expects its EBIT to be $55,000 every year forever. The firm can borrow at 6 percent. The company currently has no debt, and its
CB expects its EBIT to be $55,000 every year forever. The firm can borrow at 6 percent. The company currently has no debt, and its cost of equity is 11 percent. If the tax rate is 35 percent, what is the value of the firm?
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ISE Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
18th International Edition
1265074658, 9781265074654
