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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 $
and a cost of percent. The company has EBIT of $ that is expected to continue
in perpetuity. Assume there are no taxes.
a What is the value of the company's equity? Do not round intermediate calculations.
Leave no cell blank be certoin to enter wherever required.
o What is the debttovalue ratio? Do not round intermediote colculations and round
your answer to the nearest whole number, eg
b What are the equity value and debttovalue ratio if the company's growth rate is
percent? Do not round intermediate calculations and round your "Debtto
value" answer to decimal places, eg
c What are the equity value and debttovalue ratio if the company's growth rate is
percent? Do not round intermediate colculations and round your "Debtto
value" answer to decimal places, eg
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