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3. Suppose there are two firms A and B. Both firms operate in the same industry and are exactly same as each other except for one aspect: Firm A is financed entirely with equity, but firm B is financed with half equity and half debt. a. Suppose the two companies are exempt from taxes, and there are no bankruptcy/agency cost. Which firm should have higher firm value and why? b. Suppose now the government starts to tax the two firms with 40% tax rate. Which firm should be valued higher and why? c. Suppose now that the bankruptcy costs are also introduced to the economy. But there is still no agency cost. Which firm should be valued higher and why? d. Suppose now there is agency costs also. Which firms should be valued higher and why