Assignments BUSI 570 DEB 5-17FALL1 Homework: Week Six Homework Assignment: Chapters 14 and 15 Score: 0 of 1 pt P15-3 (similar to) 20 of 28 (24 complete) HW Score: 72 29%, 20 240 Question Hep suppose the corporate tax rate is 40% c sider a m that earms S3 000 before interest and taxes eac year with no sk The finn's capital expend res equal its depreciation expenses each year and it will have no changes to its net working capital The risk-free interest rate is 6% a. Suppose the firm has no debt and pays out its net income as a dividend each year What is the value of the 1iem's equity? b. Suppose instead the firm makes interest p c. What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt? of $1,000 per year What is the value of equity? What is the value of debr? eer What is the value of the im's equilty