Fields \& Company expects its EBIT to be $114,000 every year forever. The firm 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 23 percent, what is the value of the firm? Note: Use the M\&M proposition I formula with taxes but without any debt. Use the cost of equity as a measure of the unleveraged cost of capital RU. (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 $250,000 and uses the proceeds to repurchase shares? Note: Use the M\&M proposition I formula with taxes and with debt. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)