Calm Seas Corp, a zero growth firm, has an expected EBIT of $135,549 and a...
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Calm Seas Corp, a zero growth firm, has an expected EBIT of $135,549 and a corporate tax rate of 33%. It has $403,897 of debt. The cost of debt is 11.0%, and the cost of equity to an unlevered firm of the same risk is 13%. What is the value of the firm according to Modigliani and Miller (MM) theory with corporate taxes? Round to the nearest whole dollar
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