In today's market, the market value of each share of FRL's stock is $27. FRL is an all-equity company. Right now it has 9,100 shares of common stock outstanding FRL decided to take a loan in the amount of $88,000, and to do so it will sell the required number of corporate bonds The annual cost of this corporate loan is 6 percent. What will FRL do with this borrowed money? It will buy back some of its common stock shares and therefore remove them from the market. Calculate the earnings per share (EPS) at the break-even level of the company's earnings before interest and taxes (EBIT) (This break-even EBIT level makes FRL's stockholders indifferent between the company having debt and having none at all.) Multiple Choice O $1.62 O $4.52 $2.52 $2.73 $1.94 A company has an opportunity to either take a bank loan or issue corporate bonds. In either case, it would face a 8 percent cost of debt. However, currently, the company does not have any debt. It only has equity with annual cost of 15 percent. The company expects $119,000 EBIT every year forever. It pays 23 percent tax rate on its taxable corporate income. a. Calculate its current market value. (Do not round your intermediate calculations. Only round your final answer to 2 decimal places, e.g., 32.16.) b. Calculate its current market value if, this time, it takes a $275,000 loan and uses it to buy back its own shares of common stock. (Do not round your intermediate calculations. Only round your final answer to 2 decimal places, e.g., 32.16.) a Value of the firm b. Value of the firm