Question
Tool Manufacturing has an expected EBIT of $79,000 in perpetuity and a tax rate of 21 percent. The company has $139,000 in outstanding debt at
| Tool Manufacturing has an expected EBIT of $79,000 in perpetuity and a tax rate of 21 percent. The company has $139,000 in outstanding debt at an interest rate of 6.3 percent and its unlevered cost of capital is 14 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.) |
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
