The Book Worm Is an Unlevered Company with an Aftertax

question 82

Multiple Choice

The Book Worm is an unlevered company with an aftertax net income of $118,406. The unlevered cost of capital is 13.8 percent and the tax rate is 21 percent. What is the value of this company?

• A) $557,709
• B) $1,320,022
• C) $858,014
• D) $1,378,414
• E) $952,607

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