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Frederick & Co. expects its EBIT to be $92,000 every year forever. The firm can...

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Frederick & Co. expects its EBIT to be $92,000 every year forever. The firm can borrow at 9 percent. Frederick currently has no debt, and its cost of equity is 15 percent. Assume the tax rate is 35 percent. a. What is the value of the firm? b. What will the value be if the company borrows $60,000 and uses the proceeds to repurchase shares? c. What is the new cost of equity? d. What is the WACC

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