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Tool Manufacturing has an expected EBIT of $67,000 in perpetuity and a tax rate of 35 percent. The company has $125,000 in outstanding debt at
| Tool Manufacturing has an expected EBIT of $67,000 in perpetuity and a tax rate of 35 percent. The company has $125,000 in outstanding debt at an interest rate of 7.4 percent, and its unlevered cost of capital is 10 percent. |
| What is the value of the company according to MM Proposition I with taxes? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Company value | $ |
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