Question: please solve it in 20 mins I will thumb you up QUESTION 4 Mitch, Cam & Co. expects its EBIT to be $100,000 every year

please solve it in 20 mins I will thumb you up

QUESTION 4 Mitch, Cam & Co. expects its EBIT to be $100,000 every year forever. The firm can borrow at 8%. The company currently has no debt, and its cost of equity is 15%. If the tax rate is 24 %, what is the value of the firm? O a. $567,077 O b. $584,615 O c. $506,667 O d. $240,000 QUESTION 5 Referring to the information in (4), what will be the value of the company if Mitch, Cam & Co. borrows $200,000 and uses the proceeds to repurchase shares? a. $480,000 b. $698,432 O c. $632,615 d. $554,667

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