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Peak AS has a profit before interest and tax of 750,000 per year that is...

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Finance

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Peak AS has a profit before interest and tax of 750,000 per year that is expected to continue in perpetuity. The unlevered cost of capital for the company is 15%, and the corporate tax is 28%. The company has perpetual bond outstanding with a market value of 1.5 million. What is the value of equity of the levered company? A 2.52 million. B. 3.60 million. 1.50 million D 4.02 million

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