Edwards Construction currently has debt outstanding with a market value of $102,000 and a cost of 8 percent. The company has EBIT of $8,160 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.)

Value of equity

a-2.	What is the debt-to-value ratio? (Do not round intermediate calculations.)

Debt-to-value ratio

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))

	Growth rate
Equity value	$
Debt-to-value

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))

	Growth rate
Equity value	$
Debt-to-value	$