Fields & Company expects its EBIT to be $$102,000$ every year forever. The company can

borrow at $6$ percent. The company currently has no debt and its cost of equity is $12$

percent.

a$.$ If the tax rate is $21$ percent, what is the value of the company? $($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What will the value be if the company borrows $$185,000$ and uses the proceeds to

repurchase shares? $($Do not round intermediate calculations and round your answer

to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$.$ Value of the firm

b$.$ Value of the firm