3. (9). Prince Corp. has no debt but can borrow at a rate of 5 percent if it does decide to issue debt. Currently the firm has a cost of equity of 8 percent and faces a corporate tax rate of 40 percent. Prince expects its EBIT to be $100,000 every year forever. a. What is the market value of Prince Corp today? b. What would the market value of Prince Corp be if it replaced $200,000 of equity financing with debt financing? c. What would Prince Corp.'s cost of equity be if it changed its capital structure to 20 percent debt and 80 percent equity