Question: Example 2 . New Schools, Inc. expects an EBIT of $7,000 every year forever. The firm currently has no debt, and its cost of and

Example 2 . New Schools, Inc. expects an EBIT of $7,000

Example 2 . New Schools, Inc. expects an EBIT of $7,000 every year forever. The firm currently has no debt, and its cost of and the corporate tax rate is 34 percent. What will the value of the firm be if it converts to 50 percent debt

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