Question: A firm expects its EBIT to be $ 1 5 4 5 0 1 every year forever. The firm can borrow at 8 percent per

A firm expects its EBIT to be $154501 every year forever. The firm can borrow at 8 percent per year. The company currently has no debt, and its cost of equity is 17 percent per year. Suppose the tax rate is 0%, and there are no costs to bankruptcy. Calculate the value of the firm if they choose to increase their debt to equity ratio to 1.
[Express your answer rounded to the nearest dollar (i.e. $123456). Do NOT use commas in your response.]
Firm Value = $ Blank 1. Calculate the answer by read surrounding text.

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