Transport Inc. is considering a recapitalization to maximize firm value. The company has identified three competitors operating in the same industry. Transport Inc. competitors have the following attributes: Transport Inc. has determined its pre-tax cost of debt at various debt/equity ratios: The risk-free rate of return is 3% and the equity risk premium [Rm -Rf] is 5%. Transport Inc.'s tax rate is 35%. Transport inc.'s free cash flow (FCF) today (t=0) is $175 and the expected long-term growth rate, g, is 2%. Utilizing the cost of capital approach, find the WACC and associated D/E that maximizes firm value? What is the maximum firm value