Please show all calculations and formulas.If using Excel, please show data, formulas, etc. Practice example 6: Houston
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Question:
Please show all calculations and formulas.If using Excel, please show data, formulas, etc.
Practice example 6:
Houston Tools has expected earnings before interest and taxes of $236,800, an unlevered cost of capital of 12.65 percent, and a tax rate of 35 percent. The company has $420,000 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?
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