Example 4-1: Let EBIT=600. The beta is 2. We expect that the market will earn .14 and the risk free rate is 3%.Find the value of the firm with no debt and no taxes.

Example 4-2: Let the firm above be forced to pay 30% in taxes. Find the value.

Example 4-3: Take the firm in 4-1. Let the firm borrow 500 of .03 perpetualdebtusing the proceeds to buy back stock. Find S, D, and V.

*What does 'S' stand for here?

Example 4-4:Add 500 in debt to the firm in 4-2. Find S and V.

Example 4-5: Find the new cost of equity and the WACC for the firm in example three.

Example 4-6: Find ther(sL) for the firm in example 4.

Example 4-7: TheBeta(u) for the firm in example 1 was2. Find the new beta when we add debt and taxes like in example 4.

Please show all work