Q$.10$ Tempest Corporation expects an EBIT of $$37,700$ every year forever. The company currently has no debt, and its cost of equity is $11$ percent. The tax rate is $22$ percent.

What is the current value of the company?

Suppose the company can borrow at $6$ percent.

What will the value of the firm be if the company takes on debt equal to $50$ percent of its unlevered value?

What if it takes on debt equal to $100$ percent of its unlevered value?

What will the value of the firm be if the company takes on debt equal to $50$ percent of its levered value?

What if the company takes on debt equal to $100$ percent of its levered value?