13- Suppose a firm expects it's EBIT to be 105,000 per year forever. Assume the firm can borrow at 6.75% ad has a tax rate of 32%. If the firm has no debt and a cost of equity of 10.25%, what is the value of the firm? ($696,585) Now suppose the firm borrows $120,000 and uses the proceeds to repurchase shares Now what is the value of the firm? ($734,985) 14- A company is expected to have free cash flow of $400,000 next year. Cash flows are expected to grow at 11% per year for the next four years (years 2-5). After year 5, the free cash flow is projected to grow at 2% indefinitely. The firm currently has $1 million in debt, 200,000 shares outstanding, and a WACC of 9.5%. What is the value of the firm? ($7,123,117) What is the price per share of the company's stock? ($30.62)