Edwards Construction currently has debt outstanding with a market value of $87,000 and a cost of 11 percent. The company has EBIT of $9,570 that is expected to continue in perpetuity. Assume there are no taxes.

a-1.	What is the value of the company's equity? (Leave no cell blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)
a-2.	What is the debt-to-value ratio? (Do not round intermediate calculations and round 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 3 percent? (Do not round intermediate calculations and round your "Value of equity" answer to 2 decimal places, e.g., 32.16, 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 calculations and round your "Value of equity" answer to 2 decimal places, e.g., 32.16, and round your "Debt-to-value" answer to 3 decimal places, e.g., 32.161.)