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# Consider a firm with constant annual earnings in perpetuity of $EBIT. The firm has $B dollars of perpetual debt which carries an annual interest rate...

Consider a firm with constant annual earnings in perpetuity of $EBIT. The firm has $B dollars of perpetual debt which carries an annual interest rate of rB. The firms tax rate is T. The value of the firm is the present value of its cash flows discounted at the WACC? Which cash flows W. J.what WACC?