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L.A. Clothing has expected earnings before interest and taxes of $ 2,200, an unlevered cost of capital of 13 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 13 percent and a tax rate of 33 percent. The company also has $2,900 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?
$15,984.10 | |
$13,525.01 | |
$12,295.46 | |
$14,754.55 | |
$11,065.92 |
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