9.(3 points) Colt Systems will have EBIT this coming year of $12 million. It will also spend S5 million on total capital expenditures and increases in net working capital, and have $2 million in depreciation expenses. Colt is currently an all-equity firm with a corporate tax rate of 35% and a cost of capital of 1090.+' a) If Colt is expected to grow by 5% per year, what is the market value of its equity today? b) If the interest rate on its debt is 796, how much can Colt borrow now and still have nonnegative net income this coming year? c) What would be Colt's debt-to-value ratio and is there tax incentive to exceed it? Explain.+