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SLG Corp Is an All-Equity Firm with a Weighted Average Cost

Question 3

Multiple Choice

SLG Corp. is an all-equity firm with a weighted average cost of capital of 10.02 percent. The current market value of the equity is $13.4 million and the total tax rate is 22 percent. What is EBIT?


A) $1,966,667
B) $2,021,194
C) $1,721,385
D) $2,095,385
E) $1,943,182

Correct Answer:

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