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Dak, Prescott, and Associates (DPA) has an unlevered cost of capital of 14.5 percent. Dakota Rayne, their CFO, expects earnings before interest and taxes to

Dak, Prescott, and Associates (DPA) has an unlevered cost of capital of 14.5 percent. Dakota Rayne, their CFO, expects earnings before interest and taxes to be $48,900 in perpetuity and the firm faces a tax rate of 34 percent. The company also has $8,000 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of DPA?

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