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Chaxod company has a debt-free capital structure with 15% cost of equity which expects to generate perpetual operating profit of $7,000. The borrowing cost and

Chaxod company has a debt-free capital structure with 15% cost of equity which expects to generate perpetual operating profit of $7,000. The borrowing cost and tax rate for the firm is 8% and 40% respectively. Find out the value of Chaxod company? What would be the value of the firm if its debt-to-equity ratio is now 1?

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