Caples Communication is evaluating how to finance the firm. Caples expects to have a perpetual operating cash flow of 1,000 and a marginal tax rate of 40%. As an unleveraged firm, Caples will have a cost of capital of 12%. As a leveraged firm, Caples will issue $3,000 of perpetual debt paying 8% interest. a. Assume that Caples chooses to be an all-equity (unleveraged) firm. What is the after-tax cash flow to stockholders? What is the value of Caples an as unleveraged firm? b. Assume that Caples chooses the leveraged capital structure. What is the after-tax cash flow to stockholders and bondholders of the leveraged firm? What is the leveraged firms cost of capital? c. What accounts for the difference in the value of the two firms?