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Minolta Co. expects an EBIT of 7,000 every year forever. The firm currently has no debt, and its cost of equity is 17 %. The
Minolta Co. expects an EBIT of 7,000 every year forever. The firm currently has no debt, and its cost of equity is 17 %. The firm can borrow at 8 % and the corporate tax rate is 34 %. What will the value of the firm be if it converts to 50 % debt
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