Hunter Corporation expects an EBIT of $27,000 every year forever. The company currently has no...
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Hunter Corporation expects an EBIT of $27,000 every year forever. The company currently has no debt and its cost of equity is 13 percent. The corporate tax rate is 23 percent.
c-1. What will the value of the company be if takes on debt equal to 60 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c-2. What will the value of the company be if takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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