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The unlevered value of Mandalorian Corporation that expects an EBIT of $50,000 every year FOREVER. Mandalorian currently has no debt and its unlevered cost of
The unlevered value of Mandalorian Corporation that expects an EBIT of $50,000 every year FOREVER. Mandalorian currently has no debt and its unlevered cost of capital is 11 percent. The company can borrow at 7%. If the corporate tax rate is 21 percent, what is the unlevered value of the firm?
Hint: This is M&M Case II.
Group of answer choices
$295,454.55
$50,000.00
$39,500.00
$359,090.09
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