Question 6 20 pts The total market value of a firm with $500,000 of (perpetual) debt is $1.7 million. The rate on the debt is 10%, and the corporate tax rate is 34%. The company expects free cash flows of $310,000 every year in perpetuity. Assume that the only market imperfection comes from corporate taxes. (5 points) What would the value of the firm be if it were financed entirely with equity? (5 points) What amount of the firm's annual earnings is expected to go to stock holders each year? (10 points) What is the firm's cost of equity?