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Please use excel and show equations Southbound, Inc. is an all-equity firm with 1,000 shares of common stock outstanding. Investors require a 20% return on

Please use excel and show equations
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Southbound, Inc. is an all-equity firm with 1,000 shares of common stock outstanding. Investors require a 20% return on Southbound's a unlevered equity. The company distributes all of its earnings to equityholders as dividends at the end of each year. Southbound estimates that its EBIT will be $1,000, $2,000, or $4,200 with probabilities 0.1, 0.4, and 0.5, respectively in perpetuity. The firm's expectations about earnings will be unchanged in perpetuity and the firm is expected to live forever. There are no corporate or personal taxes. Question 4.1. 10 Points What is the value of the firm? 6 Question 4.2. 10 Points 10 Suppose Southbound issues $7,500 of debt at an interest rate of 10% and uses the proceeds to repurchase 500 shares of common stock. What is the new value of the firm? 12 13 Question 4.3. 10 Points What is the new value of the firm's equity? 14 15 16 17 a Question 4.4. 10 Points What is the required return on the firm's levered equity? 18 19 20 21 Question 4.5. 10 Points What is the firm's WACC

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