Use the following information to answer questions 14&15. Callahan & Sons expects its EBIT to be $72,000 every year forever. The firm can borrow at 5.62%, and has a tax rate of 34%. Callahan currently has no debt, and its cost of equity is 9.75%. What is the value of the firm? o $522,882 o $528,750 o $568,250 o $437,500 o $487,385 If the company borrows 120,000 and uses the proceeds to repurchase shares, what will the value be? $583,750 $581,500 O$528,185 O $577,834 $586.322