You have set up a firm to produce widgets and have landed a contract with the government, your only customer. The government agrees to buy 100 widgets at $15 each at the end of this year. The raw materials for each widget cost $5 payable at the end of the year. There are no other costs. Also, there is absolutely no uncertainty about these cash flows. The corporate tax rate is 35% and the risk free rate is 8%. a) What is the value of your firm assuming it is 100% equity financed? b) What is the value of your firm assuming you borrow the maximum possible against the firm