Hunter Corporation expects an EBIT of $20,000 every year forever. The company currently has no debt...
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Hunter Corporation expects an EBIT of $20,000 every year forever. The company currently has no debt and its cost of equity is 25 percent. The tax rate is 20 percent. What will the value of the company be if it takes on debt equal to 50 percent of its levered value? $88,012 $71,111 $128,000 $96,000 Hunter Corporation expects an EBIT of $20,000 every year forever. The company currently has no debt and its cost of equity is 25 percent. The tax rate is 20 percent. What will the value of the company be if it takes on debt equal to 50 percent of its levered value? $88,012 $71,111 $128,000 $96,000
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