Question
Macpac Clothing Co. has a levered value of $728,420. The tax rate is 34 percent. The firm has $375,000 of debt outstanding. What is the
Macpac Clothing Co. has a levered value of $728,420. The tax rate is 34 percent. The firm has $375,000 of debt outstanding. What is the unlevered value of the firm based on Modigliani & Millers Proposition I with taxes?
A. $591,123.
B. $598,616.
C. $505,520.
D. $608,022.
E. $600,920.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
