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Business, 15.04.2020 01:40 keke6361

The Rivoli Company has no debt outstanding, and its financial position is given by the following data:

Expected EBIT $600,000
Growth rate in EBIT, gL 0 %
Cost of equity, rs 10 %
Shares outstanding, no 100,000
Tax rate, T (federal-plus-state) 25 %

What is Rivoli's intrinsic value of operations (i. e., its unlevered value)?

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