Mars Industries has an all-equity capital structure and an unlevered cost of equity of 10%. The expected free cash flows of the company will be $16 million per year in perpetuity. The management is considering changing the capital structure by permanently increasing its debt to $40 million and using the borrowed fund to repurchase shares. The estimated cost of debt is 6% per year. The corporate tax rate is 30%. a. (0.5 mark) What is the current (unlevered) firm value of Mars Industries? b. (0.5 mark) What is the annual interest tax shield for March Industries after the change of the capital structure? c. (1 mark) What is the (levered) firm value of Mars Industries after the change of the capital structure? Show your work, e.g., Excel functions, formulas, and the numerical inputs, to earn partial marks