LKP, Inc. has an unlevered cost of capital of 14%, a cost of debt of 9%, a 34% tax rate, and an EBIT of $60,000. The company has $120,000 in total assets, no accounts payable, and $70,000 in total equity. What is the value of LKP, Inc.?
A) $265,857
B) $271,009
C) $282,857
D) $291,009
E) $299,857

Question

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The Answer of LKP, Inc. has an unlevered cost of capital of 14%, a cost of debt of 9%, a 34% tax rate, and an EBIT of $60,000. The company has $120,000 in total assets, no accounts payable, and $70,000 in total equity. What is the value of LKP, Inc.?
A) $265,857
B) $271,009
C) $282,857
D) $291,009
E) $299,857

LKP, Inc Has an Unlevered Cost of Capital of 14%, a a Cost