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Cornerstone Corporation expects an EBIT of $ 2 5 , 3 0 0 every year forever. The company currently has no debt, and its cost

Cornerstone Corporation expects an EBIT of $25,300 every year forever. The company currently has no debt, and its cost of equity is 15.3 percent. The company can borrow at 10.1 percent and the corporate tax rate is 25 percent.
a. What is the current value of the company?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16. b-1. What will the value of the firm be if the company takes on debt equal to 40 percent of its unlevered value?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16. b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16. c-1. What will the value of the firm be if the company takes on debt equal to 40 percent of its levered value?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16. c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
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