Multiple Choice
The Winter Wear Company has expected earnings before interest and taxes of $2,100,an unlevered cost of capital of 14% and a tax rate of 34%. The company also has $2,800 of debt that carries a 7% coupon. The debt is selling at par value. What is the value of this firm?
A) $9,900
B) $10,852
C) $11,748
D) $12,054
E) $12,700
Correct Answer:
Verified
Correct Answer:
Verified
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