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Gypco expects an EBIT of RM10,000 every year forever. The firm borrowing rate is at 7 percent. Suppose Gypco currently has no debt, and its

Gypco expects an EBIT of RM10,000 every year forever. The firm borrowing rate is at 7 percent. Suppose Gypco currently has no debt, and its cost of equity is 17 percent. If the corporate tax rate is 35 percent, calculate the value of the firm.

(3 marks)

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Gypco expects an EBIT of RM10,000 every year forever. The firm borrowing rate is at 7 percent. Suppose Gypco currently has no debt, and its

Gypco expects an EBIT of RM10,000 every year forever. The firm borrowing rate is at 7 percent. Suppose Gypco currently has no debt, and its cost of equity is 17 percent. If the corporate tax rate is 35 percent, calculate the value of the firm. (3 marks)

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Gypco expects an EBIT of RM10,000 every year forever. The firm borrowing rate is at 7 percent. Suppose Gypco currently has no debt, and its cost of equity is 17 percent. If the corporate tax rate is 35 percent, calculate the value of the firm.

(3 marks)