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Edwards Construction currently has debt outstanding with a market value of ( $ 104,000 ) and a cost of 12 percent. The company has EBIT
Edwards Construction currently has debt outstanding with a market value of \\( \\$ 104,000 \\) and a cost of 12 percent. The company has EBIT of \\( \\$ 12,480 \\) 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 certain to enter \" 0 \" wherever required.) a- What is the debt-to-value ratio? (Do not round intermediate calculations 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 6 percent? (Do not round intermediate calculations and round your \"Debt-tovalue\" 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 10 percent? (Do not round intermediate calculations and round your \"Debt-tovalue\" answer to 3 decimal places, e.g., 32.161.)
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