Homework: Chapter_16 Save Score: 0 of 1 pt 30 of 36 (22 complete) HW Score: 48.94%, 17.62 of 36 pts P 16-30 (similar to) Question Help Colt Systems will have EBIT this coming year of $27 million. It will also spend $9 million on total capital expenditures and increases in net working capital, and have $4.92 million in depreciation expenses. Colt is currently an all-equity firm with a corporate tax rate of 21% and a cost of capital of 11% a. If Colt's free cash flows are expected to grow by 8.4% per you, what is the market value of its equity today? b. If the interest rate on its debt is 9%, how much can Colt borrow now and still have non-negative net income this coming year? c. Is there a tax incentive today for Colt to choose a debt-to-value ratio that exceeds 50%? Explain. a. If Colt's free cash flows are expected to grow by 8,4% per year, what is the market value of its equity today? If Colt's free cash flows are expected to grow by 8.4% per year, the market value is $ million (Round to one decimal place.) DETE