hange Corporation expects an EBIT of $33,000 every year forever. The company currently has no debt, and its cost of equity is 11 percent. The corporate tax rate is 23 percent. What is the current value of the company? 01.$231,000.00 2. $331,000.00 3. $257,565.00 4. $284,130.00

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 15PROB
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QUESTION 6
hange Corporation expects an EBIT of $33,000 every year forever. The company currently has no debt, and
its cost of equity is 11 percent. The corporate tax rate is 23 percent.
What is the current value of the company?
1.$231,000.00
2. $331,000.00
3. $257,565.00
4. $284,130.00
Transcribed Image Text:QUESTION 6 hange Corporation expects an EBIT of $33,000 every year forever. The company currently has no debt, and its cost of equity is 11 percent. The corporate tax rate is 23 percent. What is the current value of the company? 1.$231,000.00 2. $331,000.00 3. $257,565.00 4. $284,130.00
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