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1 Dividend Airlines expects to generate an EBIT of $153.85, in perpetuity Tax rate is 35%. Unlevered cost of capital is 20%. 1) What is

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1 Dividend Airlines expects to generate an EBIT of $153.85, in perpetuity Tax rate is 35%. Unlevered cost of capital is 20%. 1) What is the firm value if it takes on $200 of debt at 10% interest? (Ignore depreciation, NWC, capex) A. $430 B. $250 C. $375 D. $570 E. $630 2) What is equity value? 3) What's the cost of equity? 4) What's WACC? 44

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