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Hunter Corporation expects an EBIT of $43,000 every year forever. The company currently has no debt and its cost of equity is 11 percent. The

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Hunter Corporation expects an EBIT of $43,000 every year forever. The company currently has no debt and its cost of equity is 11 percent. The corporate tax rate is 21 percent, Suppose the company can borrow at 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, eg, 32.16.) 1. What is the current value of the company? 2. Suppose the company takes on debt equal to 30 percent of its levered value. What will the present value of the tax shield be? What will be value of the company be? 3. Suppose the company takes on debt equal to 100 percent of its unlevered value. What will the present value of the tax shield be? What will be value of the company be

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