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Business, 18.08.2021 15:10 uhhgray

Kline Construction is an all-equity firm that has projected perpetual EBIT of $348,000. The current cost of equity is 13 percent and the tax rate is 34 percent. The company is in the process of issuing $964,000 worth of perpetual bonds with an annual coupon rate of 6.2 percent at par. What is the value of the levered firm

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Kline Construction is an all-equity firm that has projected perpetual EBIT of $348,000. The current...
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