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Edwards Construction currently has debt outstanding with a market value of $95,000 and a cost of 9 percent. The company has EBIT of $8,550 that

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Edwards Construction currently has debt outstanding with a market value of $95,000 and a cost of 9 percent. The company has EBIT of $8,550 that is expected to continue in perpetuity. Assume there are no taxes. a-1. What is the value of the company's equity? (Leave no cell blank - be certain to enter "0" wherever required.) a. What is the debt-to-value ratio? (Round your answer to the nearest whole number, 2. 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 7 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) Answer is complete but not entirely correct. a- a- 2. b. Value of equity Debt-to-value ratio ity value Debt-to-value Equity value Debt-to-value $ 4,275 0.957 29,925 0.760 c. $

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