17. Firm Value. Waychinicup Motor Corporation expects an EBIT of $24 680 every year forever. Waychinicup currently has no debt, and its cost of equity is 16.7%. a. What is the current value of the firm? b. Suppose Waychinicup can borrow at 9%. If the company tax rate is 30%, what will the value be if the company takes on debt equal to 50% of its unlevered value? What if it takes on debt equal to 100% of its unlevered value? c. What will the value of Waychinicup be if it takes on debt equal to 50% of its levered value? What if it takes on debt equal to 100% of its levered value? LO 13.1, 13.2