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Business, 08.12.2021 22:50 maren17

XYZ, Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. SC 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 with corporate taxes according to the MM model

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