Stevenson's Bakery is an all-equity company that has projected perpetual earnings before interest and taxes of $43,700 a year.The cost of equity is 15.2 percent and the tax rate is 34 percent.The company can borrow money at 7.15 percent.If the company borrows $50,000, what will be its levered value?
A)$187,613
B)$189,919
C)$206,750
D)$229,507
E)$203,682

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The Answer of Stevenson's Bakery is an all-equity company that has projected perpetual earnings before interest and taxes of $43,700 a year.The cost of equity is 15.2 percent and the tax rate is 34 percent.The company can borrow money at 7.15 percent.If the company borrows $50,000, what will be its levered value?
A)$187,613
B)$189,919
C)$206,750
D)$229,507
E)$203,682

Stevenson's Bakery Is an All-Equity Company That Has Projected Perpetual