Score: 0 of 2 pts 2 of 13 (0 complete) HW Score: 0%, 0 of 23 pts P15-3 (similar to) Question Help depreciation expenses each year, and it will have no changes to its not working of debt? Suppose the corporate tax rate is 35%. Consider a firm that earns $4,500 before interest and taxes each year with no risk. The firm's capital expenditures equal capital. The risk-free interest rate is 7%. a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? b. Suppose instead the firm makes interest payments of S800 per year. What is the value of equity? What is the value of c. What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt? a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? If the firm has no debot, and pays out its net income as a dividend each year, the value of the firm's equity is $. (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer. ? 4 parts remaining Clear All Check