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Question 5 (of 6) value 10.00 points Problem 16-14 MM and Taxes [LO2] Meyer &...

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Question 5 (of 6) value 10.00 points Problem 16-14 MM and Taxes [LO2] Meyer & Co. expects its EBIT to be $61,000 every year forever. The firm can borrow at 7 percent Meyer currently has no debt, and its cost of equity is 14 percent If the tax rate is 35 percent, what is the value of the firm? Note: Use the M&M proposition I formula with taxes but without any debt. Use the cost of equity as a measure of the unleveraged cost of capital Ru (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.) Value of the firm What will the value be if the company borrows $148,000 and uses the proceeds to repurchase shares? Note Use the M&M proposition I formula with taxes and with debt. (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g.. 32.16.) Value of the firm References Worksheet imiculty Basic Problem 16-14 MM and Taxes ILO2)

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