Cogswell Cogs (CC) is a fast-growing firm with expected earnings of $4.2 million next year. CC expects earnings to grow 12% per year indefinitely and CCs cost of capital is 14%. CC has creative accounts, so it pays no taxes. What is the market value of CC? If CC has no debt, then what is its P0/E1 ratio? If CC repurchases $40 million in equity using $40 million in debt with an interest rate of 8% (cost of capital (WACC) remains 14%), what is the new P/E ratio?