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Kline Construction is an all - equity firm that has projected perpetual EBIT of $ 2 9 2 , 0 0 0 . The current

Kline Construction is an all-equity firm that has projected perpetual EBIT of $292,000. The current cost of equity is 11.6 percent and the tax rate is 21 percent. The company is in the process of issuing $908,000 worth of perpetual bonds with an annual coupon rate of 5.8 percent at par.

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