Edwards Construction currently has debt outstanding with a market value of $400,000 and a cost of 8 percent. The company has an EBIT of $32,000 that is expected to continue in perpetuity. Assume there are no taxes.

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

b.What is the equity value and the debt-to-value ratio if the company's growth rate is 4 percent?(Do not round intermediate calculations. Round your equity value 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 is the equity value and the debt-to-value ratio if the company's growth rate is 6 percent?(Do not round intermediate calculations. Round your equity value to 2 decimal places, e.g., 32.16, and round your debt-to-value answer to 3 decimal places, e.g., 32.161.)