Dakota CoHas Expected Earnings Before Interest and Taxes of $8,100,an Unlevered

question 41

Multiple Choice

Dakota Co.has expected earnings before interest and taxes of $8,100,an unlevered cost of capital of 10 percent,and debt with both a book and face value of $14,000.The debt has an 8 coupon.The tax rate is 34 percent.What is the value of the firm?

• A)$67,460
• B)$53,460
• C)$58,220
• D)$61,000
• E)$60,600

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