Cavo corporation expects an ebit of 25250 every year, Ask an Expert

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Cavo Corporation expects an EBIT of $25,250 every year forever. The company currently has no debt, and its cost of equity is 12 percent. The corporate tax rate is 35 percent. What will the value of the firm be if the company takes on debt equal to 40 percent of its levered value?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91771781

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