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A company just issued $ 4 7 9 0 0 0 of perpetual 8 % debt and used the proceeds to repurchase stock. The company

A company just issued $ $479000$ of perpetual $8 %$ debt and used the proceeds to repurchase stock. The company expects to generate $119000$ 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 $14 %$ and the tax rate is $30 % .$ Use FTE to calculate the value of the company's equity.

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