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Edwards Construction currently has debt outstanding with a market value of $380,000 and a cost...

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Finance

Edwards Construction currently has debt outstanding with a market value of $380,000 and a cost of 6 percent. The company has an EBIT of $22,800 that is expected to continue in perpetuity. Assume there are no taxes.
a. What is the value of the companys equity and the debt-to-value ratio? (Do not round intermediate calculations. Round your debt-to-value answer to 3 decimal places, e.g., 32.161. Leave no cells blank - be certain to enter "0" wherever required.)
b. What is the equity value and the debt-to-value ratio if the company's growth rate is 2 percent? (Do not round intermediate calculations. Round your equity value to 2 decimal places, e.g., 32.16, and round your debt-to-value answer to 3 decimal places, e.g., 32.161.)
c. What is the equity value and the debt-to-value ratio if the company's growth rate is 4 percent? (Do not round intermediate calculations. Round your equity value to 2 decimal places, e.g., 32.16, and round your debt-to-value answer to 3 decimal places, e.g., 32.161.)

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