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Hospitality Inc. (HI) has EBIT of $12,600 in perpetuity, tax rate of 21%, debt of $50,000, a cost of debt (Ro) of 10%, and an

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Hospitality Inc. (HI) has EBIT of $12,600 in perpetuity, tax rate of 21%, debt of $50,000, a cost of debt (Ro) of 10%, and an unlevered cost of capital (RU) of 18%. (Use the MM propositions with taxes to answer these questions.) 1. What is the value of Hi's equity? 2. What is Hi's cost of equity capital? 3. What is HI's WACC

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