Tool Manufacturing has an expected EBIT of $38000 in perpetuity

jagguarpaw January 11, 2017 0 Comments

Question: Tool Manufacturing has an expected EBIT of $38,000…

Tool Manufacturing has an expected EBIT of $38,000 in perpetuity, and a tax rate of 31 percent. The firm has $69,000 in outstanding debt at an interest rate of 11 percent, and its unlevered cost of capital is 16 percent. The value of the firm is $ _____________ according to M&M Proposition I with taxes.

(Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))