The North Company. a major manufacturer of document shredders. has a perpetual expected EBIT of $200. The interest rate for North's debt is 12%. a. Assuming there are no taxes or bankruptcy costs, what is the value of North Company if its debt to equity ratio is .25 and its WACC is 16%? What is the value of North's equity? What is the value of its debt? What is its cost of equity? b. Suppose the corporate tax rate is 30%, there are no personal taxes or bankruptcy costs, and North has $400 in debt outstanding. If the unlevered cost of equity is 20%, what is the value of North Company? What is the value of its equity? What is its cost of equity? c. Now assume North has $600 in debt outstanding and all other factors are the same as in part b. What is the value of the firm? Compare the value with the one you calculated in part b. What is the source of the change? How would bankruptcy costs affect the relationship between debt and the firm's "all In