Question
Key Motors has expected earnings before interest and taxes of $74,700, an unlevered cost of capital of 12 percent. The company has issued $84,000 worth
Key Motors has expected earnings before interest and taxes of $74,700, an unlevered cost of capital of 12 percent. The company has issued $84,000 worth of perpetual bonds and pays 6 percent interest each year. The tax rate is 20 percent. What is the value of this company?
- $347,600
- $387,094
- $440,130
- $510,229
- $514,800
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Automated Stock Trading Systems
Authors: Laurens Bensdorp
1st Edition
1544506031, 978-1544506036
