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Company B has earnings before interest and taxes of $500,000, a corporate tax rate of 35%, debt of $900,000, and unkevered cost of capital of

Company B has earnings before interest and taxes of $500,000, a corporate tax rate of 35%, debt of $900,000, and unkevered cost of capital of 20%. The cost of dobm
10%. What is the value of VIP's equity?
a $875,000
b. $1,025,000
c. $1,040,000
d. $1,625,000
e. $1,940,000

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