Question: please I need solutions now. Saved Change Corporation expects an EBIT of $51,000 every year forever. The company currently has no debt, and its cost

please I need solutions now.
Saved Change Corporation expects an EBIT of $51,000 every year forever. The company currently has no debt, and its cost of equity is 14 percent. The corporate tax rate is 25 percent. a. What is the current value of the company? (Do not round intermediate b-1. Suppose the company can borrow at 11 percent. What will the value of the firm be if calculations and round your answer to 2 decimal places, e.g., 32.16.) the company takes on debt equal to 40 percent of its unlevered value? 32.16.) (Do not nd round your answer to 2 decimal places, e.g., ces b-2. S uppose the company can borrow at 11 percent. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) c-1. What will the value of the firm be if the company takes on debt equal to 40 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
