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Question 4: (2.5 pts) Gentech Inc. expects its EBIT to be $90,000 every year forever....

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Question 4: (2.5 pts) Gentech Inc. expects its EBIT to be $90,000 every year forever. The firm can borrow at 9%. Gentech Inc. currently has no debt, and its cost of equity is 13%. a. If the tax rate is 35%, what is the value of the firm? b. What will the value be if the company borrows $125,000 and uses the proceeds to repurchase shares? C. What is the cost of equity after recapitalization? d. What is the WACC

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