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What is the value of an all-equity firm that has operating income (EBIT) of $121m, a tax rate of 21%, and a required rate of
What is the value of an all-equity firm that has operating income (EBIT) of $121m, a tax rate of 21%, and a required rate of return of 14.2%? Assume the firm is not expected to grow. What is the value of a levered firm if a similar nonlevered firm has operating income (EBIT) of $120m, a tax rate of 21%, and a required rate of return of 11.8%? Our firm has $256m of debt at 3%. Assume the firm is not expected to grow
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