3. Firenze, Inc. is an all-equity firm that has 500,000 shares of stock outstanding. The company has decided to borrow $8 million at 9% interest to repurchase 200,000 shares of outstanding stock. a. Suppose that Firenze operates without taxation (or financial distress). What is the value of this firm in its current all-equity state. What will the firm's value be after the recapitalization? b. Under MMI, in a world with no taxes (nor financial distress), would the value of the levered firm above (i.e. Firenze with $8 million of debt after the