Cede & Co$.$ expects its EBIT to be $$92,600$ every year forever. The firm can borrow at $7$ percent. The firm currently has no debt, and its cost of equity is $14$ percent. If the tax rate is $22$ percent, what is the value of the firm? What will the value be if the firm borrows $$165,000$ and uses the proceeds to repurchase shares? What is the cost of equity after recapitalization? What is the WACC? What are the implications for the firm$$s capital structure decision?