The Book Worm Is an Unlevered Company with an Aftertax

Multiple Choice

The Book Worm is an unlevered company with an aftertax net income of $118,406. The unlevered cost of capital is 13.8 percent and the tax rate is 21 percent. What is the value of this company?

A) $557,709
B) $1,320,022
C) $858,014
D) $1,378,414
E) $952,607