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Tool Manufacturing has an expected EBIT of $ 6 9 , 0 0 0 in perpetuity and a tax rate of 2 3 percent. The

Tool Manufacturing has an expected EBIT of $69,000 in perpetuity and a tax rate of 23 percent. The firm has $200,000 in outstanding debt at an interest rate of 4.5 percent, and its unlevered cost of capital is 10.4 percent. What is the value of the firm according to M&M Proposition I with taxes?

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