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mmaruska mmaruska
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Winnipeg Skaters Company (WSC) has a before-tax cost of debt of 8%, a debt/equity ratio of 0, and pays tax at the rate of 40%. The unlevered cost of equity for a firm with WSC's risk characteristics is 15%. If WSC expects a perpetual EBIT of $20,000, then the value of the firm is

▸ $133,333.

▸ $190,476.

▸ $80,000.

▸ $43,478.
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Corporate Finance

Corporate Finance


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