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?