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Edwards Construction currently has debt outstanding with a market value of $ 9 8 , 0 0 0 and a cost of 1 0 percent.

Edwards Construction currently has debt outstanding with a market value of $98,000 and a cost of 10 percent. The company has EBIT of $9,800 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-2. What is the debt-to-value ratio? (Do not round intermediate calculations and round 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 4 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.)Edwards Construction currently has debt outstanding with a market value of $98,000
and a cost of 10 percent. The company has EBIT of $9,800 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
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 4
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.)
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