Suppone the corporate tax rate in 22%. Connider a firm that eams $1,000 in earnings belore interest and taxes each year with no risk. The firmis capial expenditures equaf its depreciation expenses each yeat, and it will have no changes to its net working 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 5600 per year. What is the value of equity? What is the value of debt? c. What is the difference between the total vake of the firm with levorage and wathout leverage? d. To what percentage of the valuo of the debt is the difference in part (c) equat? a. Suppose the firm has no debt and pays out its net income as a dridend each year. What is the value of the firm's equity? If the firm has no debt and pays out its net income as a dividend each year, the value of the firm's equity is S (Round to the nearest dollar.)