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Your firm has debt 200,000 with a yield of 9 percent and equity worth 300,000 it is growing at a 5 percent rate and faces
Your firm has debt 200,000 with a yield of 9 percent and equity worth 300,000 it is growing at a 5 percent rate and faces a 40 percent tax rate. A similar firm with no debt has a cost of equity of 12% under MM extension with growth what is the un-levered value of the firm
A. 402,857 B. 380,000 C. 300,000 D. 420,000 E. 397,143
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