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L.A. Clothing has expected earnings before interest and taxes of $58,900, an unlevered cost of capital of 14.5 percent, and a tax rate of 24

L.A. Clothing has expected earnings before interest and taxes of $58,900, an unlevered cost of capital of 14.5 percent, and a tax rate of 24 percent. The company also has $8,500 of debt that carries a 7 percent coupon. The debt is selling at par value. Calculate the value of this firm

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