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Stevensons bakeries and all equity firm that has a projected perpetual EBIT of $144,000 per...

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Accounting

Stevensons bakeries and all equity firm that has a projected perpetual EBIT of $144,000 per year. The cost of equity is 10.5% and the tax rate is 21%. Assume there's no depreciation, no capital spending and no change in networking capital. The firm can borrow perpetual debt at 5.8%. Currently, the firm is considering converting to a debt equity ratio of .54. What is the firms levered value? MM assumptions hold.
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Stevenson's Bakery is an al equity fitm that has piojected perpetusi EBIT of 5144,000 per yeac The cost of equity is 10.5 percent and the tax rate is 21 percent. Assume there is no depreciation, no copitel spending and no chonge in net working copitol. The firm can borrow perpetual debt at 5:8 percent Currently. the firm is considering converting to a debt-equity ratio of 54 . Whst is the firms levered value? MM assumptions hoid Multole Choice 5902286 s107s 3946130 51661200

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