Question: Anderson Ltd . expects EBIT to be 200,000 every year forever. The firm can borrow at 6%. Anderson currently has no debt, and the cost

Anderson Ltd. expects EBIT to be 200,000 every year forever. The firm can borrow at 6%. Anderson currently has no debt, and the cost of equity is 12%. The tax rate is 28%.

What is the value of the firm?

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