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Strong forever Co.s perpetual EBIT is expected to be $2000000 per year based upon total debt of $200000. The companys cost of debt is 5%,

Strong forever Co.s perpetual EBIT is expected to be $2000000 per year based upon total debt of $200000. The companys cost of debt is 5%, and its required return on companys assets is 10%. In a world without taxes, distress costs or agency problems, what is the value of Strong forever Co.s Co.?

Select one:

a. $20 000 000

b. $15 000 000

c. None of the options

d. $9 900 000

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