20 pts Zarco Ltd is looking at a capital restructuring plan. The plan involves increasing its existing $70 million in debt to $120 million. The interest rate on the debt is 8% and is not expected to change. The firm currently has 10 million shares outstanding, and the price per share is $40. If the restructuring is expected to increase the ROE, what is the minimum level for EBIT that Zarco Ltd management must be expecting? Ignore taxes in your answer. Braxtel Corp, a technology company specialized in tablet interface design, expects its EBIT to be $85,000 every year forever. The firm can borrow at 10%. The company currently has no debt, and its cost of equity is 15 percent. a) If the tax rate is 40 percent, what is the value of the form? b) What will the value be if the company borrows $150,000 and uses the proceeds to repurchase shares