Lucky Day Campgrounds Has Expected Earnings Before Interest and Taxes

question 80

Multiple Choice

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

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Definitions:

Homosexual Orientation

A sexual orientation characterized by emotional, romantic, or sexual attraction to individuals of the same sex.

Men

Adult human males, typically characterized by higher levels of muscle mass and facial hair compared to women.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Homosexual Men

Male individuals who experience sexual attraction to other males.