What is the value of the firm according to mm proposition, Finance Basics

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What is the value of the firm according to mm proposition

Problem

Pilbox Co has an expected EBIT of $101,000 in perpetuity and a tax rate of 23 percent. The firm has $190,000 in outstanding debt at an interest rate of 6.8 percent, and its unlevered cost of capital is 11 percent. What is the value of the firm according to MM Proposition I with taxes?

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Finance Basics: What is the value of the firm according to mm proposition

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