Question: Can you please show the work that gets this answer? The Eccles Inc., a zero growth firm, has an expected EBIT of $408,750 and a

Can you please show the work that gets this answer?

Can you please show the work that gets this answer? The Eccles

The Eccles Inc., a zero growth firm, has an expected EBIT of $408,750 and a corporate tax rate of 30%. Eccles uses $400,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. What is the value of the firm according to MM with corporate taxes? (3 points) Answers: $528,750 $675,000 $645,000 $587,500

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