Question
LKP, Inc. has an unlevered cost of capital of 14%, a cost of debt of 9%, a 34% tax rate, and an EBIT of $60,000.
LKP, Inc. has an unlevered cost of capital of 14%, a cost of debt of 9%, a 34% tax rate, and an EBIT of $60,000. The company has $120,000 in total assets, no accounts payable, and $70,000 in total equity. What is the value of LKP, Inc.?
Multiple Choice
a.$291,009
b.$265,857
c.$282,857
d.$271,009
e.$299,857
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ISE International Financial Management
Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun
9th International Edition
1260575314, 9781260575316
