Atlantic inc has ebit of 20m per year in perpetuity the, Ask an Expert

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Atlantic Inc. has EBIT of $20m per year in perpetuity. The cost of capital of unlevered firm is 10%. Pacific's current market value of debt is $50mm. Its corporate tax rate is 20% and the expected financial distress costs are $20mm. What is the market value for the company’s equity?

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Financial Management, Finance

Category:- Financial Management
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