Camouflage Corporation expects an EBIT of $$26,850$ every year forever. The company currently has no debt, and its cost of equity is $14$ percent. The tax rate is $35$ percent.

What is the current value of the company?

Suppose the company can borrow at $8$ percent. What will the value of the company be if it takes on debt equal to $50$ percent of its unlevered value? What if it takes on debt equal to $100$ percent of its unlevered value?

What will the value of the company be if it takes on debt equal to $50$ percent of its levered value? What if the company takes on debt equal to $100$ percent of its levered value?