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irga5000
5 days ago
5

Kline Construction is an all-equity firm that has projected perpetual EBIT of $316,000. The current cost of equity is 12.2 perce

nt and the tax rate is 39 percent. The company is in the process of issuing $932,000 worth of perpetual bonds with an annual coupon rate of 6.4 percent at par. What is the value of the levered firm
Business
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