3) Assume the following balance sheet information: Price per unit $1,000 $85 Book Value $100,000,000 $275,000,000 Coupn Rate 8% # of units 100,000 5,000,000 Bonds Common Stock Retained Earnings Maturity 10 years $400,000,000 Let the tax rate = 34%. Assume that the beta of the common stock is 1.2, the risk-free rate is 2%, and the market premium is 8%. Assume the firm would like to increase its debt so that its L, the percentage of debt financing, is 45%. a) Determine the new ATWACOC b) Determine the new Cost of Equity c) Determine the new value of the firm if the cash flows may be represented as a perpetuity. 3) Assume the following balance sheet information: Price per unit $1,000 $85 Book Value $100,000,000 $275,000,000 Coupn Rate 8% # of units 100,000 5,000,000 Bonds Common Stock Retained Earnings Maturity 10 years $400,000,000 Let the tax rate = 34%. Assume that the beta of the common stock is 1.2, the risk-free rate is 2%, and the market premium is 8%. Assume the firm would like to increase its debt so that its L, the percentage of debt financing, is 45%. a) Determine the new ATWACOC b) Determine the new Cost of Equity c) Determine the new value of the firm if the cash flows may be represented as a perpetuity