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L.A. Clothing has expected earnings before interest and taxes of $2,300, an unlevered cost of capital of 15% and a tax rate of 35%. The

L.A. Clothing has expected earnings before interest and taxes of $2,300, an unlevered cost of capital of 15% and a tax rate of 35%. The company also has $2,800 of debt that carries a 7% coupon. The debt is selling at par value. What is the value of this firm?

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