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(#5) Company X has debt with market value = 85,000, cost of debt=9%, EBIT=7650 (perpetual), no corporate tax. (a) What is the value of its

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(#5) Company X has debt with market value = 85,000, cost of debt=9%, EBIT=7650 (perpetual), no corporate tax. (a) What is the value of its equity? What is the debt to value ratio? (b) What is the equity value and debt/value ratio if growth in EBIT=3%/year forever? (c) What is the equity value and debt/value ratio if growth in EBIT=7%/year forever

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