2. ABC Manufacturing, Inc., is currently an all-equity firm that pays no taxes. The market value of the firm's equity is $2 million. The cost of this unlevered equity is 18% per annum. ABC plans to issue $400,000 in debt and use the proceeds to repurchase stock. The cost of debt is 10% per annum. (a) After ABC repurchases the stock, what will the firm's weighted average cost of capital be? (b) After the repurchase, what will the cost of equity be? Explain. (e) Use your answer to part b to compute ABC's weighted average cost of capital after the repurchase. Is this answer consistent with part a