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Business, 25.11.2021 08:00 eraines1714

Stevenson's Bakery is an all-equity company that has projected perpetual earnings before interest and taxes of $43,700 a year. The cost of equity is 15.2 percent and the tax rate is 34 percent. The company can borrow money at 7.15 percent. If the company borrows $50,000, what will be its levered value? a. $187,613
b. $189,919
c. $206,750
d. $229,507
e. $203,682

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