Question: (18) Eccles Inc., a zero growth firm, has an expected EBIT of $120,000 and a corporate tax rate of 30%. Eccles uses $550,000 of 12.0%

(18) Eccles Inc., a zero growth firm, has an expected EBIT of $120,000 and a corporate tax rate of 30%. Eccles uses $550,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. Refer to the data for Eccles Inc. What is the value of the firm according to MM with corporate taxes? O a $690,000 b.$587,500 c. $475,875 d. $525.000 I IF H

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