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7. Stonebridge Corporation expects an EBIT of $23,500 every year forever. Stonebridge currently has no debt, and its cost of equity is 15 percent. The

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7. Stonebridge Corporation expects an EBIT of $23,500 every year forever. Stonebridge currently has no debt, and its cost of equity is 15 percent. The firm can borrow at 10 percent. If the corporate tax rate is 35 percent, what is the value of the firm? What will the value be if the company converts to 50 percent debt? To 100 percent debt

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