Question: ) Secure l https/ BUS 622_Week 8_HW_(Ch. 14 in book) 7 Problem 14-14 MM and Taxes Cede & Co. expects its EBIT to be $105,000

) Secure l https/ BUS 622_Week 8_HW_(Ch. 14 in book) 7 Problem 14-14 MM and Taxes Cede & Co. expects its EBIT to be $105,000 every year forever. The firm can borrow at 7 percent. The firm currently has no debt, and Its cost of equity is 11 percent. 10 points If the tax rate is 35 percent, what is the value of the firm? (Do not round intermediate calculations and round your answer to 2 decimal pleces,e.g.. 3216.) Value of the firm Skipped What will the value be if the company borrows $136,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) eBook Value of the firm $_ Print Relerences Reference links 4.5 Taxes

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