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Meyer & Co. expects its EBIT to be $117,000 every year forever. The firm can borrow at 6 percent. The company currently has no debt,

Meyer & Co. expects its EBIT to be $117,000 every year forever. The firm can borrow at 6 percent. The company currently has no debt, and its cost of equity is 13 percent.

a.Value of the firm =

b.Value of the firm=

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