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Your firm keeps the debt at a constant and perpetual level of 3,000,000 EUR. The...

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Finance

Your firm keeps the debt at a constant and perpetual level of 3,000,000 EUR. The assets produce a perpetual unlevered pre-tax cash flow equal to 403,000 EUR a year. The return on unlevered equity is 6.46%. Assuming perfect markets and no taxation, what is the value the firm? Assume the government introduces a 20% tax on corporate earnings, what is the new value of the firm

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