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Edwards Construction currently has debt outstanding with a market value of $91000 and a cost of 12 percent The company has EBIT of $10 920 that is expected to continue in perpetuity Assume there

Edwards Construction currently has debt outstanding with a market value of $91,000 and a cost of 12 percent. The company has EBIT of $10, 920 that is expected to continue in perpetuity Assume there are no taxes. a-1. What is the value of the company's equity? (Do not round intermediate calculations. Leave no cell blank - be certain to enter "0" wherever required.) a 2. What is the debt-to-value ratio? (Do not round intermediate calculations.) b. What are the equity value and debt-to-value ratio if the company's growth rate is 4 percent? (Do not round intermediate calculations and round your "Debt-to-value" answer to 3 decimal places. (e.g., 32.161)) c. What are the equity value and debt-to-value ratio if the company's growth rate is 8 percent? (Do not round intermediate calculations and round your "Debt-to-value" answer to 3 decimal places. (e.g., 32.161))

 

Apr 08 2020 View more View Less

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