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A Firm Will Give a One-Time Cash Flow of $38

Question 23

Multiple Choice

A firm will give a one-time cash flow of $38 500 after one year. If the project risk requires a return of 10%, what is the levered value of the firm with perfect capital markets?


A) $30 000
B) $35 000
C) $38 182
D) More information is needed

Correct Answer:

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