Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:L.A. Clothing has expected earnings before interest and taxes of $1,900, an unlevered cost of capital of 13 percent and a tax rate of
34 percent. The company also has $2,600 of debt that carries a 6 percent coupon. The debt is selling at par value. What is the
value of this firm?
Multiple Choice
$13,689.20
$11,583.17
$9,477.14
$12,636.18
$10,530.15
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