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What is the value of the firm

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Please help me answer with Excel:

Suppose a firm expects it's EBIT to be 105,000 per year forever. Assume the firm can borrow at 6.75% ad has a tax rate of 32%. If the firm has no debt and a cost of equity of 10.25%, what is the value of the firm?

Now suppose the firm borrows $120,000 and uses the proceeds to repurchase shares. Now what is the value of the firm?

Reference no: EM133113653

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