Calvert corporation expects an ebit of $22,300 every year forever. the company currently has no debt, and its cost of equity is 15 percent. the company can borrow at 10 percent and the corporate tax rate is 21 percent.
a. what is the current value of the company?
b. what will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value?
b. what will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."