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Key Lime Pie Co. expects EBIT of $150,000 next year, and expects earnings to grow at a rate of 2% per year indefinitely. Key Lime
Key Lime Pie Co. expects EBIT of $150,000 next year, and expects earnings to grow at a rate of 2% per year indefinitely. Key Lime Pie Co. currently has no debt and its cost of equity is 16%. The firm can borrow at 3%. The corporate tax rate is 25%. What is the value of the firm? Enter your answer rounded to two decimal places. Correct response: 803,571.430.01 703125 Click "Verify" to proceed to the next part of the question. This question has 4 parts, so you will be clicking verify 4 times. Given that the firm has a value of $803,571.43 when it is all equity, what will be the value of the firm if Key Lime Pie Co. borrows $170,000 of permanent debt and uses the proceeds to buy back stock? Enter your answer rounded to two decimal places. Number Click "Verify" to proceed to the next part of the question. G a Abe http Pc Jul use Pe
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