answer A,BC correctly and i will leave a quick like. The answer's for C are incorrect so use the numbers on the top to solve for it.

c. Is there a tax incentive today for Colt to choose a debt-to-value ratio that exceeds 50% ? Explain. Colrs interest deduction is maximized at a debt-to-value rtio of \%. (Round to one decimal place.) Therefore. The most they should borrow is $ million. interest tax shield from borrowing more. Colt Systems will have Eert this coming year of $21 million. It will also spend $9 million on total capital expenditures and increases in net working capital, and have $3.82 milion in depreciaton expenses. Coit is currently an allequily firm with a corporate tax rate of 21% and a cost of capital of 11%. a. If Coits free cash flows are expected to grow by 7.6% per year, what is the market value of its equity today? b. If the interest rate on its debt is 9%, how much can Colt borrow now and still have non-negative net income this coming year? c. Is there a tax incentive today for Colt to choose a dabt-to-value ratio that exceeds 50% ? Explain