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Kline Construction is an all-equity firm that has projected perpetual EBIT of $356,000 The current cost of equity is 13.2 percent and the tax rate
Kline Construction is an all-equity firm that has projected perpetual EBIT of $356,000 The current cost of equity is 13.2 percent and the tax rate is 21 percent. The company is in the process of issuing $972,000 worth of perpetual bonds with an annual coupon rate of 6 percent at par. What is the value of the levered firm? $1,480,636 O $1,926,089 $2,334,726 $1,827,946 $2,130,606
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