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Edwards Construction currently has debt outstanding with a market value of $410,000 and a cost of 4 percent. The company has an EBIT of $16,400

Edwards Construction currently has debt outstanding with a market value of $410,000 and a cost of 4 percent. The company has an EBIT of $16,400 that is expected to continue in perpetuity. Assume there are no taxes.

a.What is the value of the companys equity and the debt-to-value ratio?

b.What is the equity value and the debt-to-value ratio if the company's growth rate is 2 percent?

c.What is the equity value and the debt-to-value ratio if the company's growth rate is 3 percent?

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