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Firm value Hunter corporation expects an EBIT of $31480 every year forever. the company currently has no debt and its cost of equity is 14
- Firm value Hunter corporation expects an EBIT of $31480 every year forever. the company currently has no debt and its cost of equity is 14 percent. The tax rate is 21 percent. a.what is current value of the company? b. Suppose the company can borrow at 8 Percent. what will the value of the company be if it takes on debt equals to 50 percent of its unlevered value?what if it takes on debt eual to 100 percent of its unlevered value? c.what will the value of the company be if takes on debt equal to 50 percent of its levered value? what if the company takes on debt equal to 100 percent of its levered value?
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