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Elzear & Co. expects its EBIT to be $69,000 every year forever. The firm can borrow at 5%. Elzear currently has no debt, and its

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Elzear & Co. expects its EBIT to be $69,000 every year forever. The firm can borrow at 5%. Elzear currently has no debt, and its cost of equity is 11%. (Round the final answers to 2 decimal places. Omit $ sign in your response.) If the tax rate is 35%, what is the value of the firm? Value of the firm $ What will the value be if the company borrows $125,000 and uses the proceeds to repurchase shares? Value of the firm $

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