Question
Tool Manufacturing has an expected EBIT of $83,000 in perpetuity and a tax rate of 25 percent. The company has $145,000 in outstanding debt at
| Tool Manufacturing has an expected EBIT of $83,000 in perpetuity and a tax rate of 25 percent. The company has $145,000 in outstanding debt at an interest rate of 6.5 percent and its unlevered cost of capital is 14 percent. |
| What is the value of the company according to MM Proposition I with taxes? |
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Multinational Finance
Authors: Kirt Butler
2nd Edition
0324004508, 978-0324004502
