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Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The cost of equity is 12.5 percent and the tax

Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The cost of equity is 12.5 percent and the tax rate is 21 percent. The firm can borrow perpetual debt at 6.6 percent. Currently, the firm is considering converting to a debtequity ratio of .84. What is the firm's levered value? MM assumptions hold

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