What is the value of the levered firm, Finance Basics

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What is the value of the levered firm

Problem

Fritz Corporation is an all-equity ?rm with an annual EBIT of $2,540,000 and a WACC of 15%. The current tax rate is 25%. Fritz Corp will have the same EBIT forever. If the company sells debt worth $2,250,000 with a cost of debt of 9%. What is the value of the levered firm?

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