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Duncan Corp. is 100% equity financed. Duncan's EBIT is forecast to be $5 million per year in perpetuity. Its cost of equity is 9% and
Duncan Corp. is 100% equity financed. Duncan's EBIT is forecast to be $5 million per year in perpetuity. Its cost of equity is 9% and its tax rate is 28%. What is the value of Duncan Corp.?
ANSWERS:
$12.9 million
$41.4 million
$15.6 million
$40 million
$55.6 million
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