- Liu, Assume that Vantech Ltd.exists in a "Modigliani and Miller" (MM) world with corporate taxes, but all other MM assumptions hold. VanTech forecasts that its EBIT will not grow in future years, that is, its most recent EBIT will become a perpetuity. VanTech has an unlevered cost of equity (rs) of 12%, its cost of debt is 7% Short term debt is considered permanent in nature. Use 2019 financial statements where required. a) What is VanTech's cost of equity? (2 Marks) b) What is Vantech's total value? (6 Marks) - Liu, Assume that Vantech Ltd.exists in a "Modigliani and Miller" (MM) world with corporate taxes, but all other MM assumptions hold. VanTech forecasts that its EBIT will not grow in future years, that is, its most recent EBIT will become a perpetuity. VanTech has an unlevered cost of equity (rs) of 12%, its cost of debt is 7% Short term debt is considered permanent in nature. Use 2019 financial statements where required. a) What is VanTech's cost of equity? (2 Marks) b) What is Vantech's total value? (6 Marks)