Problem 16.33 (Excel Video) You own all of the equity in a debt-free app development business that generates cash flows of $570,000 each year in perpetuity. The cost of assets, Kassets is 10 percent and the tax rate is 30 percent. What is the value of your all-equity firm? Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Value of firm If you decide to replace $1 million of equity by borrowing $1 million at an interest rate of 6 percent how much would the value of the firm increase? Value of firm $ What would the kes and WACC for your business be before and after the proposed financial restructuring? Use M&M Proposition 2 with taxes, Equation 16.5, to determine the expected return on the equity for input to the WACC calculation. Assume that all cash flows are perpetuities and that the second and third M&M conditions hold. (Round answers to 2 decimal places, e.g. 17.54%.) kes % WACC % Click you would like to Show Work for this question: Open Show Work