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A firm will give a one-time cash flow of $21000 after one year. If the project risk requires a return of 8%, what is the levered value of the firm with perfect capital market OA $19,444 OB. $23,333 OC. $15,556 OD. more information needed

A firm will give a one-time cash flow of $21000 after one year. If the project risk requires a return of 8%, what is the levered value of the firm with perfect capital market OA $19,444 OB. $23,333 OC. $15,556 OD. more information needed

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm will give a one-time cash flow of $21000 after one year. If the project risk requires a return of 8%, what is the levered value of the firm with perfect capital markets? OA. $19,444 OB. $23,333 OC. $15,556 D. more information needed
Transcribed Image Text:A firm will give a one-time cash flow of $21000 after one year. If the project risk requires a return of 8%, what is the levered value of the firm with perfect capital markets? OA. $19,444 OB. $23,333 OC. $15,556 D. more information needed
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