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Enterprises Ltd borrows $6,000 at a rate of 5% and that the firm pays taxes at a rate of 30%. If the firm had no
Enterprises Ltd borrows $6,000 at a rate of 5% and that the firm pays taxes at a rate of 30%. If the firm had no debt, the unlevered firm value would be $7,600. What will be the enterprise value using the APV method?
A. | $9,400 | |
B. | $7,600 | |
C. | $90 | |
D. | $1,800 |
please help
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