Chapter 16 - Review Problems (G.... 3 20 points eBook Hint References Seved Help Save & Exit Submit a. Value of the firm b. Value of the firm Check my work Problem 16-14 MM and Taxes EBIT to be $121,000 every year Fields & Company expects its forever. The company can borrow at 7 percent. The company currently has no debt and its cost of equity is 13 percent. a. If the tax rate is 25 percent, what is the value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the value be if the company borrows $285,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)