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Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of...

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Finance

Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 35 percent. The firm has $165,000 in outstanding debt at an interest rate of 8.5 percent, and its unlevered cost of capital is 15 percent. What is the value of the firm according to MM Proposition I with taxes? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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