The Rivermill Inc has no debt outstanding and its financial position is given by the following data. Assets (Market Value = Book value) = $3,000,000 EBIT = = $500,000 Cost of equity rs = 10% Stock Price Po = $15 Shares outstanding, no =200,000 Tax rate, T (federal-plus-state) =40% The firm is considering selling bonds and simultaneously repurchasing some of its stocks. If it moves to a capital structure with 30% debt based on market values, its cost of equity rs, will increase to 11% to reflect the increased risk. Bonds can be sold at a cost rd of 7%. Rivermill is a no growth firm. Hence all its earnings are paid out as dividends. Earnings are expected to be constant over time. What effect would this use of leverage have on the value of the firm