Business, 01.12.2020 16:20 jbdelarosa

Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 35 percent. The firm has $170,000 in outstanding debt at an interest rate of 7.9 percent, and its unlevered cost of capital is 12 percent. What is the value of the firm according to MM Proposition I with taxes?

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Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 35 percent. The f...