Elzear & Co$.$ expects its EBIT to be $$87,000$ every year forever. The firm can borrow at $12\%.$ Elzear currently has no debt, and its cost of equity is $16\%.($Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

If the tax rate is $35\%,$ what is the value of the firm?

Value of the firm $

What will the value be if the company borrows $$160,000$ and uses the proceeds to repurchase shares?

Value of the firm $