The firm "Eternum" has $100,000 of perpetual debt "D" at the rate kD=rF=4% and plans to receive cash flows in accordance with the following Income Statement: The tax rate is tC = 20% and there is no cost bankruptcy. Assume the following information for the market and the company:

Calculate the cost of capital WACC and the value of the leveraged asset VL

Answer rating: 100% (QA)

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