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XYC has a profit before interest and taxes of $600,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for

XYC has a profit before interest and taxes of $600,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 9 percent, and the corporate tax rate is 25 percent. The company also has a perpetual bond issue outstanding with a market value of $2 million. What is the value of the company?

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