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Edwards Construction currently has debt outstanding with a market value of $92,000 and a cost of 7 percent. The company has EBIT of $6,440 that
Edwards Construction currently has debt outstanding with a market value of $92,000 and a cost of 7 percent. The company has EBIT of $6,440 that is expected to continue in perpetuity. Assume there are no taxes. a-1. What is the value of the company's equity? (Do not round intermediate calculations. Leave no cell blank.be certain to enter "O" wherever required.) a. What is the debt-to-value ratio? (Do not round intermediate calculations and round 2. your answer to the nearest whole number, e.g., 32.) b. What are the equity value and debt-to-value ratio if the company's growth rate is 2 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) c. What are the equity value and debt-to-value ratio if the company's growth rate is 6 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) a-1. 0 a-2. 1 b. Value of equity Debt-to-value ratio Equity value Debt-to-value Equity value Debt-to-value c
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