Part $3(10$ marks$)$

Capital Corporation expects an EBIT of $$25,100$ every year forever. The company currently has no debt, and its cost of equity is $15$ percent.

a$.$ What is the current value of the company? $(2$ marks$)$

b$.$ Suppose the company can borrow at $10$ percent. If the corporate tax rate is $21$ percent, what will the value of the firm be if the company takes on debt equal to $50$ percent of its unlevered value? What if it takes on debt equal to $100$ percent of its unlevered value? $(4$ marks$)$

c$.$ What will the value of the firm be if the company takes on debt equal to $50$ percent of its levered value? What if the company takes on debt equal to $100$ percent of its levered value? $(4$ marks$)$