Firm XYZ currently has a capital structure of 30% debt and 70% equity. The cost of debt is currently 6% and the cost of equity is 12%. The value of debt is $300 million and the value of equity is $700 million. Let the tax rate equal 34%. An investment banker tells the CFO of the company that if the firm increases its leverage ratio, the cost of debt will increase according to the following schedule: Percentage Percentage Cost of Debt Debt 30% 40% 50% Equity 70% 60% 50% 6% 7% 8% Assume that the cash flow of the firm may be represented as a perpetuity. Determine the WACC for each debt level. Determine the value of the firm for each firm level