helpEdwards Construction currently has debt outstanding with a market value of $$72,000$ and a cost of $10$ percent. The company has an

EBIT of $$7,200$ that is expected to continue in perpetuity. Assume there are no taxes, the company faces no distress costs, and

investors are risk neutral.

a$.$ What is the value of the company's equity? What is the debt$-$to$-$value ratio? $($Do not round intermediate calculations. Leave no cell

blank $-$ be sure to enter $"0"$ wherever required. Omit $ sign in your response.$)$

Value of equity

Debt$-$to$-$value ratio

b$.$ What are the equity value and debt$-$to$-$value ratio if the company's growth rate is $2\mathrm{.}5$ percent? $($Do not round intermediate

calculations. Round "Debt$-$to$-$value ratio" answer to $3$ decimal places. Omit $ sign in your response.$)$

Value of equity

Debt$-$to$-$value ratio

$0\mathrm{.}731797317$

c$.$ What are the equity value and debt$-$to$-$value ratio if the company's growth rate is $9$ percent? $($Do not round intermediate

calculations. Round "Debt$-$to$-$value ratio" answer to $3$ decimal places. Omit $ sign in your response.$)$

Value of equity

Debt$-$to$-$value ratio