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Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt,

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Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0\%. Based on the data for Eccles Inc., what is the value of the firm according to MM with corporate taxes? a) $475,875 b) $528,750 c) $587,500 d) $646,250 e) $710,875

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