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Manufacturing has an expected EBIT of $40,000 per year in perpetuity and a tax rate of 35%. The firm currently has no debt. Its cost of debt is 8% and unlevered cost of capital is 14%. (i) What is the firm's current (a) firm value and (b) equity value

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Manufacturing has an expected EBIT of $40,000 per year in perpetuity and a tax rate of 35%. The firm...
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