3. Green Inc. and Sustainable Co. operate in the same industry and have exactly the same assets Green Inc. is an all equity financed company whereas Sustainable Co. has 40% debt and 60% equity financing. These companies operate in a country which has 25% corporate tax rate. Since they have exactly the same assets, they have the same EBIT of S4.45 million today. Their EBIT is expected to grow at 5% per year forever. Their shares are trading in the market at a price of $25 per share today. The beta of Green Inc. shares is 1.5. The risk free rate of return and the return on the market portfolio are 4% and 14%, respectively. The cost of debt for Sustainable Co. is 9%. a. Calculate the value of Green Inc. given its capital structure. b. Determine the amount of debt Sustainable Co. should issue in order to have its 40% debt 60% equity capital structure. c. Briefly discuss if the value of Sustainable Co. should be higher than, lower than or the same as the value of Green Inc. you calculated in part (a) of this question. If you conclude that the value of Sustainable Co. should be different than the value of Green Inc., calculate the value of Sustainable Co. and value of its equity d. Calculate the cost of equity, the beta of equity and the weighted average cost of capital for the Sustainable Co. given its capital structure e. Suppose 4 years has passed. Calculate the value of Green Inc. today f. Today, the country in which Green Inc, and Sustainable Co. operate, decides to reduce its corporate tax rate to 0%. Calculate the value of Green Inc. with no corporate taxes and the price per share for the company stock g. Briefly explain the reason for change in the value of Green Inc. when the country reduced its corporate tax rate to 0%. h. Briefly discuss if the value of Sustainable Co. should be higher than, lower than or the same as the value of Green Inc. you calculated in part( of ti question when there are no corporate taxes. If you conclude that the value of Sustainable Co. should be different than the value of Green Inc. calculate the value of Sustainable Co. i. Determine the amount of borrowing Sustainable Co. needs to have to create its 40% debt and 60% equity capital structure in this environment j. Calculate the cost of equity, the beta of equity and the weighted average cost of capital for the Sustainable Co. when there are no corporate taxes