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Can I please get some help with these practice questions I keep messing up somewhere along the way. Thanks Marcus Corporation is currently all equity

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Can I please get some help with these practice questions I keep messing up somewhere along the way. Thanks

image text in transcribedimage text in transcribed
Marcus Corporation is currently all equity financed and has a value of $85 million. Investors currently require a return of 11.2 percent on common stock. Marcus has a marginal tax rate of 15 percent. Marcus plans to issue $10 million of debt with a return of 4.2 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions rounded to two decimal places. Enter your response below. Number million Key Lime Pie Co. expects EBIT of $150,000 every year forever. Key Lime Pie 00. currently has no debt and its cost of equity is 14%. The firm can borrow at 9%. The corporate tax rate is 23%. What is the value of the firm? Enter your answer rounded to two decimal places

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