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Lazy Clothes has expected earnings before interest and taxes (EBIT) of $48,900. The unlevered cost of capital is 14.5% and the tax rate is 34%.

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Lazy Clothes has expected earnings before interest and taxes (EBIT) of $48,900. The unlevered cost of capital is 14.5% and the tax rate is 34%. The firm also has $8000 in debt that has a 7% coupon. The debt sells at par value. Find the value of the levered firm A. $224,108 B. $222,579 C. $225,477 D. $223,333 E. $225,299

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