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Tool Manufacturing has an expected EBIT of RM63,000 in perpetuity and a tax rate of 21 percent. The firm has RM115,000 in outstanding debt at

  1. Tool Manufacturing has an expected EBIT of RM63,000 in perpetuity and a tax rate of 21 percent. The firm has RM115,000 in outstanding debt at an interest rate of 7 percent and its unlevered cost of capital is 12 percent. What is the value of the company according to MM Proposition I with taxes?
  2. pls do not write in 2 3 line explain formulas and do it pls

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