In a world without taxes,distress costs,or agency problems,calculate the value of Lever Co.if its perpetual EBIT is expected to be $1,000,000 per year based upon total debt of $200,000.The firm's cost of debt is 5% and its required return on firm's assets is 10%.
A) $19,800,000
B) $10,000,000
C) $9,900,000
D) none of the above
Correct Answer:
Verified
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