Value of Equity Assignment | Homework For You
May 26th, 2020
Edwards Construction currently has debt outstanding with a market value of $92,000 and a cost of 7 percent. The company has EBIT of $6,440 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- What is the debt-to-value ratio? (Do not round intermediate calculations and round 2. your answer to the nearest whole number, e.g., 32.)
b. What are the equity value and debt-to-value ratio if the company’s growth rate is 2 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 6 percent? (Do not round intermediate calculations and round your “Debt-to- value” answer to 3 decimal places, e.g., 32.161.)
a-1. a-2. Value of equity Debt-to-value ratio Equity value Debt-to-value Equity value Debt-to-value. Get Finance homework help today
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