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The Winter Wear Company has expected earnings before interest and taxes of $4,000, an unlevered cost of capital of 15 percent and a tax rate
The Winter Wear Company has expected earnings before interest and taxes of $4,000, an unlevered cost of capital of 15 percent and a tax rate of 30 percent. The company also has $3,000 of debt with a coupon rate of 6 percent. The debt is selling at 105% of face value. What is the value of this firm?
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