A firm has Sh. 4 million of 7.5 % interest rate debt. Its expected EBIT is Sh. 0.9 million and its cost of equity is 10 %. All assumptions of the Net Income theory apply. Required: a) Calculate the value of the firm using the Net Income approach b) Calculate the cost of capital for the firm the Net Income approach c) Estimate the value of the firm and the cost of capital if the amount of debt is changed to ; (i) Sh. 5 million (ii) Sh. 3 Million (iii)Sh. 12 Million