Q 17.12. A firm has expected before-tax earnings of $20 per year forever, starting next year. The firm is in the 25% tax bracket. 1. If the firm is financed with half debt (risk-free, at 5% per year) and half equity (at 10% per year), and this is eternally maintained, then what is its NPV? 2. If this firm took on $50 in debt and maintained its debt load at $50 forever (i.e., not the 50/50 debt-equity ratio), then what would this firm's value be?