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Maddux Corporation has an EBIT of $ 8 6 5 , 0 0 0 per year that is expected to continue in perpetuity. The unlevered
Maddux Corporation has an EBIT of $ per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is percent and the corporate tax rate is percent. The company also has a perpetual bond issue outstanding with a market value of $ million. What is the value of the company? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to decimal places, egThe CFO of the company informs the company president that the value of the companyis $ million. Is the CFO correct?
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