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Harvest Foods is an all-equity firm that has projected perpetual earnings before interest and taxes of $629,000. The current cost of equity is 15.7 percent
Harvest Foods is an all-equity firm that has projected perpetual earnings before interest and taxes of $629,000. The current cost of equity is 15.7 percent and the tax rate is 35 percent. The company is in the process of issuing $3 million of 7 percent coupon bonds at par that pay interest annually. What is the levered value of the firm?
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