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C-Urchin Limited an unlevered firm has an EBIT of $450,000 that it expects it will earn forever, and it pays all of its earnings as

C-Urchin Limited an unlevered firm has an EBIT of $450,000 that it expects it will earn forever, and it pays all of its earnings as dividends to shareholders (i.e. no growth). The firm has a corporate tax rate of 40% and a cost of equity of 9.4%. Assuming a world of taxes and a cost for the risk of default. What is the value of the firm?

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