Jellybean Co$.$ expects EBIT of $$300,000$ every year forever. Jellybean Co$.$ currently has no debt and its cost of equity is $17\%.$ The firm can borrow at $5\%.$ The corporate tax rate is $23\%.$

What is the value of the firm? Enter your answer rounded to two decimal places.

$1764705\mathrm{.}88$

Correct response: $1,358,823\mathrm{.}53\backslash$pm $0\mathrm{.}01$

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Given that the firm has a value of $$1,358,823\mathrm{.}53$ when it is all equity, what will be the value of the firm if Jellybean Co$.$ borrows $$130,000$ of permanent debt and uses the proceeds to buy back stock? Enter your answer rounded to two decimal places.

Number

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