2) Currently, the Fotopoulos Corporation's balance sheet shows a debt of $1 billion. Furthermore, the company has determined the following information: The stock of Fotopoulos is trading at $50 and the total number of shares outstanding is 100 million. The debt to equity ratio is 0.2. EBIT is $948 million. The company estimates that its before-tax cost of debt is 7.5 percent. The company estimates that its beta is 1.1. The risk-free rate is 6 percent. The market risk premium is 7 percent. The company's tax rate is 40 percent. In addition, the Fotopoulos Corporation is considering a recapitalization. The proposed plan is to issue $1 billion worth of debt and to use the money to repurchase $1 billion worth of common stock. As a result of this recapitalization, the firm's size will not change. However, Fotopoulos's before-tax cost of debt will rise to 10% on all debt. a) What is Fotopoulos' current WACC (before the proposed recapitalization)? b) What will the company's new WACC be if it proceeds with the recapitalization? c) What will be the company's new share price after recapitalization