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Edwards Construction currenty has debt outstanding with a market value of $450,000 and a cost of 8 percent. The company has an EBIT of $36,000

Edwards Construction currenty has debt outstanding with a market value of $450,000 and a cost of 8 percent. The company has an EBIT of $36,000 that is expected to continue in perpetuity. Assume there are no taxes.

A. What is the value of the company's equity and the debt-to-value ratio?

B. What is the equity value and the debt-to-value ratio if the company's growth rate is 3 percent?

C. What is the equity value and the debt-to-value ratio if the company's growth rate is 5 percent?

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