co has an unlevered cost of capital of 1 3 % and its tax rate is 2

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Question:

co has an unlevered cost of capital of

13 %

and its tax rate is

24 % .

It also has debt with both a market and face value of $

50000 .

The YTN and coupon rate of the debt are both

6 % .

Coupons are payable annualy. What is the value of the company if it has earnings before interest and taxes of $

255000 ?

Posted Date: May 18, 2024 01:10 PM

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co has an unlevered cost of capital of 1 3 % and its tax rate is 2

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