Question: Please help me solve this problem please help me solve this problem Kline Construction is an all-equity rm that has projected perpetual EBIT of $368,000.

Please help me solve this problem please help me solve this problem

problem Kline Construction is an all-equity rm that has projected perpetual EBIT

Kline Construction is an all-equity rm that has projected perpetual EBIT of $368,000. The current cost of equity is 13.5 percent and the tax rate is 35 percent. The company is in the process of issuing $984,000 worth of perpetual bonds with an annual coupon rate of 5.7 percent at par. What is the value ofthe levered rm

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