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Please show formulas The Great Indoors is an all-equity firm and expects EBIT to be $1,400,000 in perpetuity. The firm's tax rate is $1,400,000 and

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The Great Indoors is an all-equity firm and expects EBIT to be $1,400,000 in perpetuity. The firm's tax rate is $1,400,000 and the cost of unlevered equity is 6.0%. The firm is considering changing capital structure by issuing $2,000,000 in debt at 6.0% in interest. a. Calculate the value of the unlevered and levered firm. b. Calculate the WACC for the levered firm. 12 points EBIT $ 1,400,000 Interest rate 6% 14% Cost of equity Tax rate 21% Amount borrowed $ 2,000,000 Vu V Debt-Equity ratio RE WACC

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