A new business will generate a one-time cash flow of $25,000 after one year.The business will be financed with 20% equity and 80% debt.If the firm's unlevered equity cost of capital is 12%,what is the levered value of the firm with perfect capital markets?
A)$19,882
B)$22,321
C)$22,000
D)$28,000
E)$23,000

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The Answer of A new business will generate a one-time cash flow of $25,000 after one year.The business will be financed with 20% equity and 80% debt.If the firm's unlevered equity cost of capital is 12%,what is the levered value of the firm with perfect capital markets?
A)$19,882
B)$22,321
C)$22,000
D)$28,000
E)$23,000

A New Business Will Generate a One-Time Cash Flow of $25,000