QUESTION 2 (25 MARKS) a. Makmur Plantation Group Bhd expects and EBIT of RM3 milliom every year forever. Makmur Plantation can borrow at 7%. Suppose Makmur Plantation currently has no debt and its cost of equity is 17%. Required: i. If the corporate tax is 28%, what is the value of the firm? 11. iii. (3 marks) What will be the Makmur Plantation value be if, Makmur plantation borrows RM1 million and proceeds to repurchase stock? (3 marks) From your answer in (i) and (ii), explain what happend to value of the firm by having a debt? (4 marks)