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Denver Dry Goods has expected earnings before interest and taxes of $14,600, an unlevered cost of capital of 15 percent, and a tax rate of
Denver Dry Goods has expected earnings before interest and taxes of $14,600, an unlevered cost of capital of 15 percent, and a tax rate of 35 percent. The company also has $3,500 of debt that carries a 6 percent coupon. The debt is selling at par value. What is the value of this firm?
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