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Problem 16 A late penalty of 5% will apply to new answers. Intro Better Home and Garden (BHG) expects an EBIT of $190,000 every year

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Problem 16 A late penalty of 5% will apply to new answers. Intro Better Home and Garden (BHG) expects an EBIT of $190,000 every year forever The company currently has no debt and its unlevered cost of capital is 12%. Its average tax rate is 34%. The company wants to borrow $418,000 to repurchase shares. The debt will have an interest rate of 76% and will be kept constant forever. 18Attempt 1/10 for 9.5 pts. Part 1 What is the value of the firm without debt? 0+ decimals Submit Attempt 1/10 for 9.5 pts. Part 2 What is the value of the firm with debt? 0+ decimals Submit

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