calculation without using excel

5. XYZ Ltd. expects it EBIT to be $100,000 every year forever. The firm can borrow at 6%. It has no debt and the cost of equity is 16%. If the tax rate is 25%, what is the value of the firm? What will the value be if it borrows $25,000 and repurchase the outstanding shares and the cost of equity, WACC after recapitalization? (15 Points)