4. Jackson-Presley is now planning a major restructuring involving the following actions A division, producing records and cassettes, will be sold for $ 50 million. That division is currently earning $ 5 million before interest and taxes. Comparable firms in this business have an average beta of 1.15 and an average debt/equity ratio of 50%. The cash from the sale of the divisions will be used to buy back stock. The dividend payout ratio will be reduced to 15%. a. Estimate the new growth rate in earnings, after the restructuring, using fundamentals. (4 points) b. Estimate the new cost of equity for Jackson-Presley after the restructuring. (4 points)