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L.A. Clothing has expected earnings before interest and taxes of $1,900, an unlevered cost of capital of 13 percent and a tax rate of 34
L.A. Clothing has expected earnings before interest and taxes of $1,900, an unlevered cost of capital of 13 percent and a tax rate of 34 percent. The company also has $2,600 of debt that carries a 6 percent coupon. The debt is selling at par value. What is the value of this firm? Multiple Choice $13,689.20 $11,583.17 $9,477.14 $12,636.18 $10,530.15
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