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A business has EBIT of 147,000 . The business has a current-market bond of 650,000 and 9% cost. Suppose there is no taxation. Also, assume

A business has EBIT of 147,000 . The business has a current-market bond of 650,000 and 9% cost. Suppose there is no taxation. Also, assume that the required return on equity is the same as the required return on debt. The business growth rate is 4% per annum in perpetuity. a) What is the value of equity? b) What is the negotiable (current value) of the business?

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