A fiRm Has a Tax Rate of 35%, an Unlevered

question 123

Multiple Choice

A firm has a tax rate of 35%, an unlevered rate of return of 14%, total debt of $1,000, and an EBIT of $300.00. What is the unlevered value of the firm?

• A) $27
• B) $393
• C) $1,027
• D) $1,393
• E) $2,143

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Definitions:

Promote and Protect

Activities or policies aimed at supporting and safeguarding interests, rights, or properties.

Government

The system or group of people governing an organized community, often a state, including institutions and officials that make and enforce laws.

Disparities

Inequalities or differences, often in the context of social, economic, or health outcomes among different populations.

Wealth

An abundance of valuable material possessions or resources, including money, property, and other assets.