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Business, 14.04.2020 15:52 ayoismeisjjjjuan

Kline Construction is an all-equity firm that has projected perpetual EBIT of $360,000. The current cost of equity is 13.3 percent and the tax rate is 40 percent. The company is in the process of issuing $976,000 worth of perpetual bonds with an annual coupon rate of 5.9 percent at par. What is the value of the levered firm

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