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Business, 22.12.2020 04:10 danielahchf

New Schools is an all-equity company with an expected EBIT of $94,000 every year forever. The company can borrow at 7.4% while its cost of equity is 13.9%. What will be the value of the company if it converts to 50% debt given its total tax rate of 24% A) 477.407.B) 500,916.C) 575,632.D) 480,690.E) 532,408.

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