3. The Weavers Food Company is an all equity firm. It expects perpetual earnings before interest and taxes (EBIT) of $20 million per year. Its equity required return is 12%. The firm is subject to a 25% tax rate. a. What is the value of Weavers Food? b. If Weavers Food issues $40 million debt with 7.0% yield and buys back $40 million worth of stock. What will be the value of the firm? c. What is Weavers Food new debt equity ratio? d. What is Weavers Food cost of equity and WACC (assume 6% cost of debt)?