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Business, 20.04.2021 20:20 brylove603

Bassett Fruit Farm expects its EBIT to be $413,000 a year forever. Currently, the firm has no debt. The cost of equity is 14.2 percent and the tax rate is 39 percent. The company is in the process of issuing $1.8 million worth of bonds at par that carry an annual coupon of 5.6 percent. What is the unlevered value of the firm?

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Bassett Fruit Farm expects its EBIT to be $413,000 a year forever. Currently, the firm has no debt....
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