. Total Manufacturing has an expected EBIT of $60,000 per year in perpetuity and a tax rate of 30%. The firm currently has no debt. Its cost of debt is 8% and unlevered cost of capital is 15%. (i) What are the firm's current (a) firm value; (b) equity value? (i) If the firm changes its capital structure by borrowing $100,000 to repurchase the same amount of equity, what would be the firm's (a) firm value and (b) equity value under the new capital structure? (c) What is the change in firm values compared to (i)? (lili) If the firm changes its capital structure by borrowing $100,000 to repurchase the same amount of equity, what would be the firm's (a) firm value; (b) equity value if the company's tax rate is 10% instead of 30%