Tool manufacturing has an expected ebit of $72,000 in perpetuity and a tax rate of 24 percent. the company has $128,500 in outstanding debt at an interest rate of 6.9 percent and its unlevered cost of capital is 11 percent. what is the value of the company according to mm proposition i with taxes? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

The value of the company according to MM Proposition I with taxes is $528294.55

Explanation:

value of unlevered firm  = EBIT(1-T)/Ru

                                        = 72000*(1 - 24%)/11%  

                                       = 497454.55

value of levered firm = 497454.55 + 128500*0.24

                                   = $528294.55

Therefore, The value of the company according to MM Proposition I with taxes is $528294.55

15 pounds of apples and 6 cups of flour

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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