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Lunar Shine Corporation expected an EBIT of $28,650 every year forever. The company currently has no debt, and its cost of equity is 11.8%. The

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Lunar Shine Corporation expected an EBIT of $28,650 every year forever. The company currently has no debt, and its cost of equity is 11.8%. The corporate tax rate is 23%. (Refer to the MM propositions) a. What is the current value of the firm? b. Suppose the company can borrow at 7.1%. What will the value of firm be if the company takes on debt equal to 50% of its unlevered value? What if it takes on debt equal to 100% of its unlevered value? c. What will the value of the firm be if the company takes on debt equal to 50% of its levered value? What if the company takes on debt equal to 100% of its levered value

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