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Meyer & Co . expects its EBIT to be $ 5 8 , 0 0 0 every year forever. The firm can borrow at 9
Meyer & Co expects its EBIT to be $ every year forever. The firm can borrow at percent. Meyer currently has no debt, and its cost of equity is percent.
If the tax rate is percent, what is the value of the firm? Do not round intermediate calculations. Round your answer to decimal places, eg
Value of the firm
$
What will the value be if the company borrows $ and uses the proceeds to repurchase shares? Do not round intermediate calculations. Round your answer to decimal places, eg
Value of the firm
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