Question 4 0 / 1 point A firm currently has $1,000,000 in total capital with 20% Debt and no preferred stock. They pay 8% interest on debt, have a $250,000 EBIT, and have a 34% corporate tax rate. If they were to change their debt level to 35%, which of the following formulas represents the value of the firm after the change in debt? - V1 represents the current debt level and V2 represents the new debt level? V1 = V2 + 0.34D V1 = V2 + 0.20D V1 = V2 + 0.35D V2 = V1 +0.34D V2 = V1 +0.20D V2 = V1 +0.35D