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Posted on Aug 26, 2024

Summit Corp faces a tax rate of 3 5 % , a 7 % cost of debt and a 2 2 % cost of levered

Summit Corp faces a tax rate of

35 %,

7 %

cost of debt and a

22 %

cost of levered equity. The debt to equity ratio of the frim is

0.25

and EBIT is $

300, 000 .

What is the unlevered value of the firm?

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