2. Disney Corporation has a debt-to-value ratio of 2/5. The required return on the firm's unlevered equity is 15 percent, and the pretax cost of the company's debt is 10 percent. Sales revenue for Disney Corporation is expected to remain stable indefinitely at last year's level of $39,480,000. Variable costs amount to 70 percent of sales. Disney Corporation is taxed at the corporate tax rate of 40 percent. The company has a policy of distributing all of its earnings as dividends at the end of each year. a) If Disney Corporation were financed entirely by equity, how much would it be worth? b) What is the required return on the firm's levered equity? c) Use the WACC method to calculate the value of Disney Corporation. What is the value of the firm's equity? What is the value of the firm's debt? d) Use the flow-to-equity method to calculate the value of Disney Corporation's equity. Is this the same as or different from the answer you obtained in part c above