Edwards Construction currently has debt outstanding with a market value of $125,000 and a cost of 11 percent. The company has EBIT of $13,750 that is expected to continue in perpetuity. Assume there are no taxes. * * * - - - 4 4 4 4 4 4 4 4 4 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 3 percent? (Do not round intermediate calculations and round your "Debt-to- value" 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 8 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) a-1. Value of equity a-2. Debt-to-value ratio b. Equity value b. Debt-to-value c. Equity value c. Debt-to-value

Edwards Construction currently has debt outstanding with a market value of $125,000 and a cost of 11 percent. The company has EBIT of $13,750 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 3 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 8 percent? (Do not round intermediate calculations and round your "Debt-tovalue" answer to 3 decimal places, e.g., 32.161.)