A company expects its earnings before interest and taxes to be $119,000 every year in perpetuity. The company has an opportunity to borrow money (e.g., bank loan or bonds) at 8 percent annual cost of debt. Right now, however, the company does not have any debt, and its annual cost of equity equals 15 percent. a. Assume that the company faces a tax rate of 23 percent. Calculate the current market value of this company. (Do not round your intermediate calculations. Only round your final answer to 2 decimal places, e.g., 32.16.) b. Recalculate the market value of this company if it takes a loan of $275,000 and uses the borrowed money to buy back its own stock shares. (Do not round your intermediate calculations. Only round your final answer to 2 decimal places, e.g., 32.16.) a. Value of the firm b. Value of the firm