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  3. 6 smith co expects its ebit to be $375,000 per yea

6 Smith Co expects its EBIT to be $375,000 per year forever. The firm can...

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6 Smith Co expects its EBIT to be $375,000 per year forever. The firm can borrow at 6.75%. The firm currently has no debt and the cost of equity is 13.%. The tax rate is 38% 9 a. What is the value of the firm? b. What is the firm's WACC? C. Assume the firm borrows $750,000 1) What is the value of the firm now? 1) What is the cost of equity now? fit) What is the firm's WACC

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