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Use the following information to answer questions 18 -19Mayer & Co. expects its EBIT to be $110,000 every yearforever. The firm can borrow at 10 percent. Meyer currently has nodebt, and its cost of equity is 22 percent. If the tax rate is 40percent, what is the value of the firm? (Do not round intermediatecalculations. Round your answer to 2 decimal places, e.g.,32.16.)Value of the firm = $_______Hint: there is no Interest, so EBIT x (1-t) gives you NI. Sinceit is a perpetuity, NI/r gives you the value of the firm.What will the value be if the company borrows $290,000 and usesthe proceeds to repurchase shares? (Do not round intermediatecalculations. Round your answer to 2 decimal places, e.g.,32.16.)Value of the firm = $______Hint: This is a Miller Modigliani question with tax. Take theall-equity value of the firm from the previous question and add toit the value of the perpetual debt tax shield equal to the tax ratetimes the value of the Debt.