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Edwards Construction currently has debt outstanding with a market value of $ 3 4 0 , 0 0 0 and a cost of 7 percent.

Edwards Construction currently has debt outstanding with a market value of $340,000 and a cost of 7 percent. The company has an EBIT of $23,800 that is expected to continue in perpetuity. Assume there are no taxes.
What is the value of the company's equity and the debt-to-value ratio? (Do not round
a. intermediate calculations. Round your debt-to-value answer to 3 decimal places, e.g.,32.161. Leave no cells blank - be certain to enter "0" wherever required.)
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.)
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