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uJulia Corp. is a levered company with a perpetual EBIT of $1.0 million per year. It has 150,000 shares and an outstanding debt of $3
uJulia Corp. is a levered company with a perpetual EBIT of $1.0 million per year. It has 150,000 shares and an outstanding debt of $3 million. The tax rate is 0.40. If the cost of unlevered equity is 10% and the expected bankruptcy costs are $225,000, what is the stock price consistent with this information?
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