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# Edwards Construction currently has debt outstanding with a market value of $103,000 and a cost of 12 percent. The company has EBIT of $12,360 that is...

Edwards Construction currently has debt outstanding with a market value of $103,000 and a cost of 12 percent. The company has EBIT of $12,360 that is expected to continue in perpetuity. Assume there are no taxes.

**1.**

What is the value of the company's equity?

**Value of equity? **

**2.**What is the debt-to-value ratio?

**Debt-to-value ratio? **

**b.**What are the equity value and debt-to-value ratio if the company's growth rate is 4 percent?

**Equity value? Debt-to-value? **

**c.**What are the equity value and debt-to-value ratio if the company's growth rate is 8 percent?

** Equity value? Debt-to-value?**