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Stevenson's Bakery is an all - equity company that has projected perpetual earnings before interest and taxes of $ 4 3 , 0 0 0

Stevenson's Bakery is an all-equity company that has projected perpetual earnings before interest and taxes of $43,000 a year. The cost of equity is 15.0 percent, and the tax rate is 21 percent. The company can borrow money at 7.15 percent. If the company borrows $45,000, what will be its levered value? A. $236,285 B. $235,250 C. $234,801 D. $229,507 E. $235,917

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