Please help with number 18!!!

The relationship of corporate income taxes, pertonal income taxos on equity investments, and personal income taxes on interest income should have a predictable change in debt ratios: which of the following predicts increasing debt rates? A. Higher corporate income taxes, lower personal taxes on equity investments, lower personal taxes on interest income B. Lower corporate income taxes, higher personal taxes on equity investments, lower parsonal taxes on interest income C. Higher corporate income taxes, higher personal taxes on equity investments, lower personal taexs on interes income D. Higher corperate income taxes, higher personal taxes on equity investments, higher personal taxes on interest income The unlovered firm expects to earn $250,000 in net operating income each year for the future. It has a few rate of 40% and has a capitalization rate of 8% equal to the industry required return for this type of firm, it calculates that there is a 10% change the firm will fall into bankruptcy in any given year and that, if bankruptcy does occur, it will impose direct and indirect conts folating $48,000. Assume that, in the event of bankruptcy, the firm will recorganice and continue operations indegintely, with a constart 10% probability of. If necessary use the industry required return for discounting costs. Assume that the firm considers borrowing $500,000 debit at an interes rate 6% and use the proopeds to repurchase an equal amount of outstanding stock. With this level of debt, the likehood of falling into is ary given year increase to 15%, and if bankruptoy occurs then it will impose direct and indirect costs totaling $48,000 with at benefit and costs considered, what is the overall value of the unievered firm if no debt is used? (YOU MAY WANT TO SAVE YOUR CALCULATIONS FOR THE OTHER PELATED QUESTIONS.) A. $1,785,000 B. $1,870,200 c. $1,815,000 D. $1,275,000 E. $1,875,000