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Tool Manufacturing's expected EBIT will remain constant at $51,000 with a tax rate of 21%. The company has outstanding liabilities of $126,000, an interest rate

Tool Manufacturing's expected EBIT will remain constant at $51,000 with a tax rate of 21%. The company has outstanding liabilities of $126,000, an interest rate of 5.35%, and an unleveraged cost of capital of 9.6%. According to MM's first theorem (tax included), what is the value of the company?
If the company's goal is to maximize enterprise value, should the company change its debt-to-equity ratio? Why?

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