PPT Slide

Firm U: Unleveraged

Prob. 0.25 0.50 0.25

EBIT $2,000 $3,000 $4,000

Interest 0 0 0

EBT $2,000 $3,000 $4,000

Taxes (40%) 800 1,200 1,600

NI $1,200 $1,800 $2,400

Economy

Bad Avg. Good

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