Green Mines Company is in the Trade-Off-Model world and currently has no debt. Its operating income is expected to grow at 0% perpetually. The firm is planning to recapitalize using some financial leverage of either Plan I or Pan II. (The proceeds from borrowing are used to repurchase some shares). The debt is perpetual with no effect on EBIT. Additional information is as follows:

Required

(1) According to the Trade-Off Model that includes all types of taxes, what is the firms value right after Plan I recapitalization?

(2) According to the Trade-Off Model that includes all types of taxes, what is the firms value right after Plan II recapitalization?

(3) According to the Trade-Off Model that includes all types of taxes, should the firm recapitalize using any plan? Why or why not? Support the answer with some relevant numbers.