Lucky Day Campgrounds has expected earnings before interest and taxes of $6,200, an unlevered cost of capital of 12%, and a tax rate of 35%. The company also has $24,000 of debt that carries an 8% coupon. The debt is selling at par value. What is the value of this firm?
A) $32,609
B) $34,811
C) $37,141
D) $39,617
E) $41,983

Question

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The Answer of Lucky Day Campgrounds has expected earnings before interest and taxes of $6,200, an unlevered cost of capital of 12%, and a tax rate of 35%. The company also has $24,000 of debt that carries an 8% coupon. The debt is selling at par value. What is the value of this firm?
A) $32,609
B) $34,811
C) $37,141
D) $39,617
E) $41,983

Lucky Day Campgrounds Has Expected Earnings Before Interest and Taxes