Cavo corporation expects an ebit of $33,000 every year forever. the company currently has no debt, and its cost of equity is 16%. the corporate tax rate is 35%.a. what is the current value of the company? b-1. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 60% of its unlevered value? b-2. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 100% of its unlevered value? c-1. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 60% of its levered value? c-2. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 100% of its levered value?

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?