Transcribed image text: 13. As a consultant to First Responder Inc., you have obtained the following data (dollars in millions). The company plans to pay out all of its earnings as dividends, hence g = 0. Also, no net new investment in operating capital is needed because growth is zero. The CFO believes that a move from zero debt to 15.0% debt would cause the cost of equity to increase from 10.0% to 13.0%, and the interest rate on the new debt would be 9.0%. What would the firm's total market value be if it makes this change? Hints: Find the FCF, which is equal to NOPAT = EBIT(I - T) because no new operating capital is needed, and then divide by (WACC - g). Do not round your intermediate calculations. Oper. income (EBIT) $800 Tax rate 40.0% New cost of equity (rs) 13.00% New wa 15.0% Interest rate (rd) 9.00% a. S4,047 b. $4,371 c. $3,076 d. $3,966 e. $4,452