Bassett Fruit Farm expects its EBIT to be $413,000 a year forever. Currently, the firm has no debt. The cost of equity is 14.2 percent and the tax rate is 39 percent. The company is in the process of issuing $1.8 million worth of bonds at par that carry an annual coupon of 5.6 percent. What is the unlevered value of the firm?

Sunset foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. however, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. with the launch of its new line of breakfast foods coming up, how can sunset improve its ability to collaborate without sacrificing the benefits of its current structure