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Lazare Corp. expects an EBIT of 19,750.00 every year forever. Lazare currently has no debt, and its cost of equity is 15 percent. The firm

Lazare Corp. expects an EBIT of 19,750.00 every year forever. Lazare currently has no debt, and its cost of equity is 15 percent. The firm can borrow at 10 percent. If the Corp. tax rate is 35 percent, what is the value of the firm? What will the value be if the company converts to 50 percent debt? to 100 percent debt?

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