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Edwards Construction currently has debt outstanding with a market value of $ 1 1 3 , 0 0 0 and a cost of 1 1

Edwards Construction currently has debt outstanding with a market value of $113,000
and a cost of 11 percent. The company has EBIT of $12,430 that is expected to continue
in perpetuity. Assume there are no taxes.
a-1. What is the value of the company's equity? (Do not round intermediate calculations.
Leave no cell blank - be certoin to enter "O" wherever required.)
o- What is the debt-to-value ratio? (Do not round intermediote colculations and round
2 your answer to the nearest whole number, e.g.,32.)
b. What are the equity value and debt-to-value ratio if the company's growth rate is 4
percent? (Do not round intermediate calculations and round your "Debt-to-
value" answer to 3 decimal places, e.g.,32.161.)
c. What are the equity value and debt-to-value ratio if the company's growth rate is 7
percent? (Do not round intermediate colculations and round your "Debt-to-
value" answer to 3 decimal places, e.g.,32.161.)
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