QUESTION 14 6 points Sore CLO2) Meyer & Co expects its earnings before Interest and traves, EiT, to be $130.000 every year for ever. The form can borrow at 6 percent. The company currently has no debt and its cost of equity 11 is . A what is the value of the firm? (1 mark) B. If the company borrow $300,000 and uses the proceeds to repurchase shares What will the value be after the recapitalization? (1 marko What is the cost of equity for the recapitalization? (1.5 mark w What is the WACC) What is the implication for the firm's capital structure decision>(25 marks) For the toolbar, press ALT-F10 (PC) or ALT-FN-F10 (Mac). BIVA Paragraph Arial 14px IXO Tii 2 3