From the entrepreneurial finance book, chapter 10 minicase of softtec company. Part G

There is no answer for the part G regarding Recalculate the equity using the original 25 percent discount rate.

G. Now assume that the $35,000 in long-term debt (and therefore interest expense at 10 percent) is expected to grow with sales. Recalculate the equity using the original 25 percent discount rate