Question 38 2.23 pts (Use the following information for problems 38 - 39) XYZ expects its EBIT to be $79,000 every year forever. The company can borrow at 6 percent. The company currently has no debt, and its cost of equity is 12 percent. If the tax rate is 35 percent, what is the value of the company? $325,806.14 0 $427,916.67 O $523,025.38 O $623,025.38 D Question 39 2.23 pts What will the value be if the company borrows $125,000 and uses the proceeds to repurchase shares? $331,505.53 O $471,666.67 O $581,061.37 0 $681,061.37