Jellybean Co$.$ expects EBIT of $$100,000$ every year forever. Jellybean Co$.$ currently has no debt and its cost of equity is $20\%.$ The firm can borrow at $9\%.$ The corporate tax rate is $34\%.$

What is the value of the firm? Enter your answer rounded to two decimal places.

$330,000$

Correct response: $330,000\backslash$pm $0\mathrm{.}01$

Click "Verify" to proceed to the next part of the question. This question has $4$ parts, so you will be clicking verify $4$ times.

Given that the firm has a value of $$330,000$ when it is all equity, what will be the value of the firm if Jellybean Co$.$ borrows $$270,000$ of permanent debt and uses the proceeds to buy back stock? Enter your answer rounded to two decimal places.

$1,553,180\mathrm{.}99$

Correct response: $421,800\backslash$pm $0\mathrm{.}01$

Click "Verify" to proceed to the next part of the question.

Given that the firm has a value of $$330,000$ when it is all equity, how can Jellybean Co$.$ maximize the value of the firm? What will be the maximum value if there are no costs to financial distress? Enter your answer rounded to two decimal places.