Joe's leisure time sports is an unlevered firm with an aftertax net income of $78,400. the unlevered cost of capital is 11.4 percent and the tax rate is 35 percent. what is the value of this firm?
The unlevered cost of capital is 11.4 percent for this case. Therefore the value of this firm will be Vu = 78400 / 0.114 = 687719.2982 $. The correct answer is 687719.2982 $
