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Edwards Construction currently has debt outstanding with a market value of $370,000 and a cost of 6 percent. The company has an EBIT of $22,200
Edwards Construction currently has debt outstanding with a market value of $370,000 and a cost of 6 percent. The company has an EBIT of $22,200 that is expected to continue in perpetuity. Assume there are no taxes.
b. Assume that the company's growth rate is 3 percent. What is the value of the companys equity and the debt-to-value ratio now?(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).)
Equity value = ?
Debt-to-value = ?
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