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Question 39 2.5 pts (Use the following information for problems 39-40) XYZ expects its EBIT to be $79.000 every year forever. The company can borrow

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Question 39 2.5 pts (Use the following information for problems 39-40) XYZ expects its EBIT to be $79.000 every year forever. The company can borrow at 6 percent. The company currently has no debt, and its cost of equity is 12 percent. If the tax rate is 35 percent, what is the value of the company? $325,806.14 o $427.916.67 $523,025.38 $623,025.38 Question 40 2.5 pts What will the value be if the company borrows $125,000 and uses the proceeds to repurchase shares? $331,505.53 $471,666.67 $581,061.37 $681,061.37

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