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Elzear & Co. expects its EBIT to be $89,000 every year forever. The firm can borrow at 5 percent. Elzear currently has no debt, and

Elzear & Co. expects its EBIT to be $89,000 every year forever. The firm can borrow at 5 percent. Elzear currently has no debt, and its cost of equity is 10 percent. (Round the final answers to 2 decimal places.)

If the tax rate is 35 percent, what is the value of the firm?

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