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D&D has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent, and a tax rate of 22 percent.
D&D has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent, and a tax rate of 22 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm?
A) $12,115
B) $19,819
C) $15,585
D) $12,055
E) $17,700
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