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Tool Manufacturing has an expected EBIT of $65,000 in perpetuity and a tax rate of 35 percent. The firm has $160,000 in outstanding debt at

Tool Manufacturing has an expected EBIT of $65,000 in perpetuity and a tax rate of 35 percent. The firm has $160,000 in outstanding debt at an interest rate of 8.40 percent, and its unlevered cost of capital is 12 percent.

What is the value of the firm according to M&M Proposition I with taxes? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Value of the firm $

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