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Apple Inc., a cell-phone manufacturer, is an all-equity firm. At the end of the current year, the CFO expects EBIT to be $100 and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Apple is 10%. Apple's prime competitor is Verge Inc., manufacturer of the Blueberry smartphone. Verge is identical to Apple Inc. in every respect except that Verge has $130,44 of long-term debt outstanding. What is the value of Verge Inc.? The corporate tax rate is 40%. $550 $578 $652 $690