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a-d? Suppose the corporate tax rate is 30% Consider a firm that earns $4,500 in earnings before interest and taxes each year with no risk.

image text in transcribeda-d?
Suppose the corporate tax rate is 30% Consider a firm that earns $4,500 in earnings before interest and taxes each year with no risk. The firm's capital expenditures equal is depreciation expenses each year, and it will have no changes to its networking capital. The risk-free interest rate is 6% a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? b. Suppose instead the firm makes interest payments of $2,700 per year. What is the value of equity? What is the value of debt? c. What is the difference between the total value of the firm with leverage and without loverage? d. To what percentage of the value of the debt is the difference in part (c) equal? a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? If the film has no debt and pays out its net income as a dividend each year, the value of the firm's equity is $(Round to the nearest dollar)

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