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Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $150,000 per year. The cost of equity is 10.9 percent and the tax

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Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $150,000 per year. The cost of equity is 10.9 percent and the tax rate is 40 percent. The firm can borrow perpetual debt at 6 percent. Currently, the firm is considering converting toa debt-equity ratio of .60. What is the firm's levered value? Multiple Choice $887,615 $949,541 $743,119 $825,688 $1,022,583

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