Excel McGraw Hill Excel Question - Saved v O Searc File Home Insert Draw Formulas Data Review View Help b Calibri ~ 11 v B B 1 or A B16 X fx A B D E F G 1 Fields & Co. expects its EBIT to be $125,000 every year forever. The firm can borrow at 7 percent. The company currently has no debt, and its cost of equity is 12 percent. If the tax rate is 24 percent, what is the value of the firm? What will the value be if the company borrows $205,000 and 2 uses the proceeds to repurchase shares? 3 4 Input Area: 5 6 |EBIT $125,000 7 Interest rate 7% 8 Cost of equity 12% 9 Tax rate 24% 10 Amount borrowed $205,000 11 12 (Use cells A6 to B10 from the given information to complete this question.) 13 14 Output Area: 15 16 Unlevered value 17 Levered value 18