Business, 18.06.2020 17:57 AADJ4

Kline Construction is an all-equity firm that has projected perpetual EBIT of $316,000. The current cost of equity is 12.2 percent and the tax rate is 39 percent. The company is in the process of issuing $932,000 worth of perpetual bonds with an annual coupon rate of 6.4 percent at par. What is the value of the levered firm

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Kline Construction is an all-equity firm that has projected perpetual EBIT of $316,000. The current...

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