(Extra one point) Firm FAANG is an all-equity firm with 100 million shares outstanding. It expects to generate $300 million as EBIT per year in perpetuity. All earnings after tax will be paid out as dividends and the corporate tax rate is 40%. FAANG is considering issuing $500 million of perpetual debt to buy back equity. The pretax cost of debt is 5% and the current WACC is 15%. 1) What is the current market value of FAANG? (Hint: the market value of an all-equity firm EBITX(1- tax rate) Cost of equity ) 2) What is the current price of FAANG stock per share? 3) What is the market value of FAANG after it changes the capital structure