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Show all work. Zebra Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Zebra uses $500,000
Show all work.
Zebra Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Zebra uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. What is the value of the firm according to MM with corporate taxes? $646,250 $587,500 $475,875 $710,875 $528,750Step by Step Solution
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