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A company just issued $ 2 8 9 0 0 0 of perpetual 1 0 % debt and used the proceeds to repurchase stock. The

A company just issued $ $289000$ of perpetual $10 %$ debt and used the proceeds to repurchase stock. The company expects to generate $106000$ of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of capital is $10 %$ and the tax rate is $20 % .$ Use FTE to calculate the value of the company's equity.

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