20 points As a financial analyst at Merrill Lynch, you are analyzing the impact of debt on the value of the firm. Suppose Quantum Electronics, Inc has a mod debt and equity in its capital Save structure. The company is currently valued at $500 million. The corporate tax rate of the company is 28%. As a financial analyst at Citibank, you want to answers the following question a. What would be the value of the firm if it issued $200 million in perpetual debt and repurchased the equity? b. What would be the value of the firm if it issued a $200 million, one-year loan at 10%? c. What would be the value of the firm if it issued a 20-year loan of $200 million at 10%? Please choose all correct answers. Please also note that each incorrect answer will reduce the score by 10% The value of the firm is 510.09 million if it issued a $200 million, one-year loan at 10% 2 The value of the firm would be $560 million if it issued $200 million in perpetual debt and repurchased the equity The value of the firm is $505.09 million if it issued a $200 million, one-year loan at 10% The value of the firm is $515,09 million if it issued a $200 million, one-year loan at at 10% 5. The value of the firm is $500.09 million if it issued a $200 million, one-year loan at 10% The value of the firm would be $558 million if it issued $200 million in perpetual debt and repurchased the equity 7 The value of the firm would be $556 million if it issued $200 million in perpetual debt and repurchased the equity The value of the firm would be $562 million if it issued $200 million in perpetual debt and repurchased the equity The value of the firm is 547.68 if it issued a 20-year loan of $200 million at 10%. 10 The value of the firm is $544.09 million if it issued a $200 million, 20-year loan at 10% 11 The value of the firm is $514.09 million if it issued a $200 million, 20-year loan at 10% The value of the firm is $537.09 million if it issued a $200 million, 20-year loan at 10% 8. 9. 12