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please help thanks Question 5 Assume taxes, no bankruptcy costs. Lazare Corporation expects an EBIT of $25,790 every year forever. Lazare currently has no debt

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Question 5 Assume taxes, no bankruptcy costs. Lazare Corporation expects an EBIT of $25,790 every year forever. Lazare currently has no debt and its cost of equity is 12%. The firm can borrow at 12%. The corporate tax rate is 35%. A. What is the value of the firm? B. What will the value be if the company converts to 50% debt? Assume the debt is permanent

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