3. Corporation A has earnings before interest and taxes of $4000,000 and a 40 percent tax rate. It is able to borrow at an interest rate of 12 percent, whereas its equity capitalization rate in the absence of borrowing is 22 percent. The earnings of the company are not expected to grow, and all earnings are paid out to shareholders in the form of dividends. In the presence of corporate but no personal taxes A. What is the value of the company in an M&M world with no financial leverage? B. If Bankruptcy cost with debt is 300,000. Cal late the value of Company with $6 million in debt