Vanshika Sports Company expects an EBIT of $31,480 every year forever. The company currently has...

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Finance

Vanshika Sports Company expects an EBIT of $31,480 every year forever. The company currently has no debt and its cost of equity is 14 percent. The tax rate is 21 percent.
A. Calculate the firm's current value with no debt.
B. Suppose the company can borrow at 8 percent. What will the value of Vanshika Sports Company be if it takes on debt equal to 50 percent of its unlevered value?
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