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Leisure Vacations Is an Unlevered Firm with an Aftertax Net

Question 59

Multiple Choice

Leisure Vacations is an unlevered firm with an aftertax net income of $84,600.The unlevered cost of capital is 10 percent and the tax rate is 34 percent.What is the value of this firm?


A) $567,600
B) $781,818
C) $820,000
D) $846,000
E) $558,360

Correct Answer:

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