Stock holder risk suppose a firm’s business operations are such that they mirror movements is the economy as a whole very closely; that is, the firm’s asset beta is 1.0. Use the result of Problem 21 to find the equity beta for this firm for debt-equity ratios of 0, 1, 5, and 20. What does this tell you about the relationship between capital structure and share holder risk? How is the share holders required return on equity affected? Explain.