Question: Question 27 of Question 27 10 points Save Answer Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax
Question 27 of Question 27 10 points Save Answer Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eecles uses $500,000 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? a 646,250 b. 5587,500 OG $710,875 d. 8528,750 O $475,875
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