Please show calcution.

DEF Company expects an EBIT of $19,750 every year forever. DEF currently has no debt, and its cost of equity is 15 percent. The firm can borrow at 10 percent. The corporate tax rate is 35 percent. Assume no financial distress risk.

a. What is the value of the firm with its existing capital structure? (3 marks)

b. What will the value be if the company converts to 50 percent debt? (5 marks)

c. What are the cost of equity and WACC if the company converts to 50 percent debt?

(5 marks)

d. What will the value be if the company converts to 100 percent debt? (5 marks)

e. What is the WACC if the company converts to 100 percent debt? (2 marks)

f. Compare the firm values and WACCs at 0%, 50%, and 100% debt. What can we conclude regarding the relationship between leverage level, firm value, and WACC? (5 marks)