Question: Cede & Co. expects its EBIT to be $165,500 every year forever. The company can borrow at 8 percent. The company currently has no debt

Cede & Co. expects its EBIT to be $165,500 every year forever. The company can borrow at 8 percent. The company currently has no debt and its cost of equity is 14 percent. Using the answer from question 4, what will the value be if the company borrows $185,000 and uses the proceeds to repurchase shares? Round to the nearest dollar and format as "XXX.XXX

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