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Company XYZ expects an EBIT of $ 1 9 0 , 0 0 0 every year forever. The firm currently has no debt, and its
Company XYZ expects an EBIT of $ every year forever. The firm currently has no debt, and its cost of equity is The firm can borrow $ at and buy back shares. The corporate tax rate is what would be XYZ cost of equity after the recapitlaiztion
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