Tool Manufacturing has an expected EBIT of $72,000 in perpetuity and a tax rate of 24 percent. The company has $128,500 in outstanding debt at an interest rate of 6.9 percent and its unlevered cost of capital is 11 percent. What is the value of the company according to MM Proposition I with taxes? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
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