Please answer the following question Calvert Corporation expects an EBIT of $23,100 every...
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Please answer the following question
Calvert Corporation expects an EBIT of $23,100 every year forever. The company currently has no debt, and its cost of equity is 14.2 percent. The company can borrow at 9 percent and the corporate tax rate is 24 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-1. What will the value of the firm be if the company takes on debt equal to 60 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c-1. What will the value of the firm be if the company takes on debt equal to 60 percent of its levered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. Value of the firm b-1. Value of the firm b-2. Value of the firm C-1. Value of the firm c-2. Value of the firm
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