T Inc. has expected free cash flows of $47,450 in perpetuity and a tax rate of 35%. The firm has $145,000 in outstanding debt at an interest rate of 7.25%, and its unlevered cost of capital is 11 percent. What is the value of the firm according to M&M Proposition I with taxes, but no bankruptcy costs? Should the firm change its debtequity ratio if the goal is to maximize the value of the firm? Explain.