Tool manufacturing has an expected ebit of 70000 in


Tool Manufacturing has an expected EBIT of $70,000 in perpetuity and a tax rate of 35 percent. The firm has $135,000 in outstanding debt at an interest rate of 7.6 percent, and its unleveraged cost of capital is 10 percent.

What is the value of the firm according to M&M Proposition I with taxes? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Value of the firm $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Tool manufacturing has an expected ebit of 70000 in
Reference No:- TGS02399571

Expected delivery within 24 Hours