Flimpic corporation has no debt and is expected to have EBIT of $7million every year. Its cost of capital is 12%. Assume there are no taxes and no bankruptcy costs. Suppose that the company issues $20 million of debt and uses the cash to repurchase equity. What is the total value of the company before the debt issue? What will be the total value of the company after the debt issue and stock repurchase? Name the principle you used to answer part b, or state it in a sentence? What will be the value of the companys equity after the change in capital structure? What is the new debt to equity ratio? Now suppose that there are corporate taxes with a rate of 21%. What is the value of the company before the debt issue? What is the Present Value of all future interest tax shields? What is the new total value of the company? What is the new value of the company? What is the new debt-to-equity ratio?