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Cede & Co. expects its EBIT to be $ 95,000 every year forever. The firm can borrow at 9 percent. Cede currently has no debt,
Cede & Co. expects its EBIT to be $ 95,000 every year forever. The firm can borrow at 9 percent. Cede currently has no debt, and its cost of equity is 19 percent. If the tax rate is 32 percent, the value of the firm is $. The value will be $if company borrows $ 66,000 and uses the proceeds to repurchase shares.(Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))
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