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An Unlevered fiRm Has After-Tax Net Income = $125,000

Question 244

Multiple Choice

An unlevered firm has after-tax net income = $125,000. The unlevered cost of capital is 13% and the corporate tax rate is 34%. What is the value of this firm?


A) $594,102
B) $634,615
C) $729,654
D) $961,538
E) $1,051,591

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