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Consider a firm with expected EBIT of $250,000 per year. The firm has $500,000 in outstanding debt and a WACC of 10%. What is the

Consider a firm with expected EBIT of $250,000 per year. The firm has $500,000 in outstanding debt and a WACC of 10%. What is the market value of the firm's equity? Assume there are no taxes.

$2,000,000

$1,000,000

$250,000

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