Beyond Impossible Foods expects its EBIT to be $80,000 every year forever. The firm can borrow at 6%. The firm currently has no debt, and its cost of equity is 12%. If the tax rate is 35 percent, what...

Beyond Impossible Foods expects its EBIT to be $80,000 every year forever. The firm
can borrow at 6%. The firm currently has no debt, and its cost of equity is 12%. If the
tax rate is 35 percent, what is the value of the firm?

 Beyond Impossible Foods expects its EBIT to be $80,000 every year forever. The firm
can borrow at 6%. The firm currently has no debt, and its cost of equity is 12%. The
firm’s tax rate is 35 percent. If the firm restructures by borrowing $150,000 and using
the proceeds to repurchase shares, what will be the value of the restructured firm?