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QUESTION 2 Grainger has expected earnings before interest and taxes of $595,000, an unlevered cost of capital of 10.5 percent, and a tax rate of

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QUESTION 2 Grainger has expected earnings before interest and taxes of $595,000, an unlevered cost of capital of 10.5 percent, and a tax rate of 25 percent. The company has $2,200,000 of debt that carries a 6 percent coupon. The debt is selling at par value. What is the value of this company? $4,182,603 $4,800,000 $4,728,571 $4,926,373 $4,673,290

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