2. Safecorp currently has 500 million in debt and the market value of its equity is 800 million. Beta of its stock is 1.20. The company is planning a leveraged buyout (LBO) that will increase its debt-to-equity ratio to 5. If the marginal tax rate is 20%, what will be the equity beta of the firm after the LBO? (5 marks) 3. Beta plc is in steady state and has book value of equity of 500m. Its return on equity is 10%, cost of equity is 8%, and the payout ratio is 60%. a. What is the expected steady state growth rate for Beta plc? (2 marks) b. What is the value of equity of the company