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Find value of company-s equity and debt to value ratio

Edwards Construction currently has debt outstanding with a market value of $ 90,000 and a cost of 9 percent. The company has an EBIT of $ 8,100 that is expected to continue in perpetuity. Assume there are no taxes. What is the value of the company's equity? What is the debt to value ratio?

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Finance Basics: Find value of company-s equity and debt to value ratio

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find value of company-s equity and debt to value ratio

Reference No:- TGS0675238

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find value of company-s equity and debt to value ratio

Reference No:- TGS0675238

Recent Questions Asked Finance Basics

Q : Describe your cultural background

Q : Determinethe incremental net operating income

Q : Constant provides a superior forecast

Q : What is the minimum acceptable price

Q : Find value of company-s equity and debt to value ratio

Q : Determine share of preferred stock

Q : Calculate the net present value on this project

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Q : Compute the amount of the last dividend

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