Suppose the corporate tax rate is 28%. Consider a firm that earns $1,000.00 bofore interest and taxes each year with no risk. The firmis capital expenditures equal its depreciation expenses each year, and it will have no changos to its net working capital. Tho risk-free interest rate is 4%. a. Suppose the firm has no debt and pays out its net income as a dividend each yoar. What is the value of the firm's equity? b. Suppose instead the firm makes interost payments of $400.00 per year. What is the valuo of equity? What is the value of debt? c. What is the difference betweon the total value of the firm with leverago and without lovorage? d. The difference in (c) is equal to what percentage of the value of the debt