The smith vacations company has expected earnings before, Financial Management

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The smith vacations company has expected earnings before

The Smith Vacations Company has expected earnings before interest and taxes of $2,100 per year in perpetuity, an unlevered cost of capital of 14% and a tax rate of 34%. The company also has $2,800 of debt that carries a 7% coupon. The debt is selling at par value. What is the value of this firm?

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