Business, 22.08.2019 21:00 wickedskatboarder

Tropical fruit extracts expects its earnings before interest and taxes to be $218,000 a year forever. currently, the firm has no debt. the cost of equity is 16.3 percent and the tax rate is 35 percent. the company is in the process of issuing $2 million of bonds at par that carry a 6.5 percent annual coupon. what is the unlevered value of the firm

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Tropical fruit extracts expects its earnings before interest and taxes to be $218,000 a year forever...