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(3 pts] New Schools expects an EBIT of 587,000 every year forever. The firm currently has no debt, and its cost of equity is 14.6

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(3 pts] New Schools expects an EBIT of 587,000 every year forever. The firm currently has no debt, and its cost of equity is 14.6 percent The firm can borrow at 7.4 percent and the corporate tax rate is 34 percent. What will the value of the firm be if it converts to 50 percent debt? $460,146.57 $377,407.16 $437,552.08 $438,119.30

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