Vanshika Sports Company expects an EBIT of $31,480 every year forever. The company currently has...
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Finance
Vanshika Sports Company expects an EBIT of $ every year forever. The company currently has no debt and its cost of equity is percent. The tax rate is percent.
A Calculate the firm's current value with no debt.
B Suppose the company can borrow at percent. What will the value of Vanshika Sports Company be if it takes on debt equal to percent of its unlevered value?
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