Multiple Choice
Dakota Co.has expected earnings before interest and taxes of $8,100,an unlevered cost of capital of 10 percent,and debt with both a book and face value of $14,000.The debt has an 8 coupon.The tax rate is 34 percent.What is the value of the firm?
A) $67,460
B) $53,460
C) $58,220
D) $61,000
E) $60,600
Correct Answer:
Verified
Correct Answer:
Verified
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