Smart, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $68 each. There will be 55,000 new shares offered at $56 each. What is the value of a right? (10 points) Cube & Co. expects its EBIT to be $87,000 every year forever. The firm can borrow at 8 percent. The company currently has no debt, and its cost of equity is 11 percent. If the tax rate is 23 percent, what is the value of the firm? What will the value be if the company borrows $195,000 and uses the proceeds to repurchase shares? (10 points)