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SpyGear Inc, a manufacturer of spy gear, is expected to generate an EBIT of $ 2 0 0 , 0 0 0 at the end

SpyGear Inc, a manufacturer of spy gear, is expected to generate an EBIT of $200,000 at the end of every year forever that it pays out as dividends. The required return of debt is 12% per year. The firm has a debt-equity ratio of 0.25. The return on the firm's assets is 16% per year. Assume an idealized world without taxes and with well functioning markets.

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