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L.A. Clothing has expected earnings before interest and taxes of $ 2,200, an unlevered cost of capital of 16 percent and a tax rate of

L.A. Clothing has expected earnings before interest and taxes of $2,200, an unlevered cost of capital of 16 percent and a tax rate of 35 percent. The company also has $3,100 of debt that carries a 6 percent coupon. The debt is selling at par value. What is the value of this firm?

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