Fields & Company expects its EBIT to be $$125,000$ every year

forever. The firm can borrow at $7$ percent. The company currently

has no debt, and its cost of equity is $12$ percent.a$.$ If the tax rate is $24$ percent, what is the value of the firm?

$($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 $$205,000$ and

uses the proceeds to repurchase shares? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$