EPL, Inc. currently has an all-equity capital structure. It has an expected perpetual operating income of EBIT=$1,250,000 per year and a corporate tax rate of T=35%. The personal tax rate on debt is Tp=32% and the personal tax rate on equity is Tpe=15%. Assume no financial distress costs. If EPL levers the firm by borrowing D=$1,000,000 of perpetual debt at par and repurchases shares, by how much will total firm value increase the change in value)? O a. $320,000 b. $350,000 O c. $187,500 O d. $0