26. The Eccles Inc., a zero grow ne Eccles Inc.. a zero growth firm has an expected EBIT of $120,000 and a corporate tax rate of 30 Eccles uses $600.000 es uses $600.000 of 12.0% debt, and the cost of equity to an unlevered firm in the same nisk classis 16.0%. What is the value of the firm according to MM with corporate taxes? (3 points) $675,000 $705,000 $587,500 $645,000 b. sses e d. 27. Cartwright Communications is considering making a change to its capital structure capital and increase firm value Richt now Cartwright has a capital structure that consists OT 3070 den and 70% equity, based on market values (ie their D/S ratio is 0.25). Currently the com 30% leverage) is 1.2, and its tax rate is 40%. What would be Cartwright's new estimated levered beta were to change its capital structure to 40% debt and 60% equity? Hint: First calculate their inlevered beta and then lever it up to the new wa (3 points) 0.95 1.34 1.51 0.79 Inni variable costs of