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Jones Co expects its EBIT to be $234,000 every year forever. The firm can borrow at 7.5 percent. The firm currently has no debt and

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Jones Co expects its EBIT to be $234,000 every year forever. The firm can borrow at 7.5 percent. The firm currently has no debt and the cost of equity is 16.5%. The tax rate is 35%. a. What is the value of the firm? b. What is the firms WACC? C. Assume that the firm borrows $84,000 1) What is the value of the firm now? 2) What is the cost of equity? 3) What is the firm's WACC? vere ul et un 4 (tax) (Jebt)

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