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The market value of a firm with $ 1 million of debt is $ 3 . 4 million. The firm's earnings before interest and tax
The market value of a firm with $ million of debt is $ million. The firm's earnings
before interest and tax EBIT are expected to be a perpetuity. The interest rate on debt
is The company's tax rate is What would be the value of the firm if it was
financed entirely with equity
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