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Your mother's company is unlevered and has a weighted average cost of capital of 7.5 percent. She believes that the company's EBIT will be a
Your mother's company is unlevered and has a weighted average cost of capital of 7.5 percent. She believes that the company's EBIT will be a constant amount in perpetuity. The current market value of the company's equity is $13 million and the corporate tax rate is 35 percent. |
What is the company's EBIT? |
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