The firm has sales revenue $600,000 per year that is expected to continue in perpetuity. The fixed cost is $120,000 per year and the variable cost is 40% of sales. The corporate tax rate is 20%. It will distribute all of its earnings as dividend at the end of each year. It has debt to equity ratio of 1/1. The cost of the firm's unlevered equity is 10% and pre-tax cost of debt is 8%. a. What is the value of the firm if it is all-equity financed? (5 marks) b. Based on the Modigliani and Miller's (MM) theory, what is the required rate of return on the levered firm's equity? (5 marks) c. How much is the Weighted Average Cost of Capital (WACC) of the firm? (5 marks) d. What is the value of the firm based on the WACC method? (5 marks) e. What is the value of the firm's equity based on the Flow to Equity method