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Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The...

Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The cost of equity is 12.5 percent and the tax rate is 35 percent. The firm can borrow perpetual debt at 6.6 percent. Currently, the firm is considering converting to a debt–equity ratio of .84. What is the firm's levered value?

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