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2. North Corp. EBIT is $200. It has a debt-equity ratio of 25% and a WACC of 16%. Debt interest is 12%. Ignore growth opportunities

2. North Corp. EBIT is $200. It has a debt-equity ratio of 25% and a WACC of 16%. Debt interest is 12%. Ignore growth opportunities and taxes. What is the value of the equity? What is the value of the firm? What is the cost of equity capital?

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