(5 pt.) The company Z Co. has a 6 of 2.1 and a market value of 9.5 billion. Assume that the company is financed with 50% debt and 50% equity, that the risk-free interest rate is 6 per cent and that the required rate of return of an appropriate index of all shares on the stock exchange is 12.5 per cent. Z Co.'s management proposes to raise 4.25 billion in additional equity capital and to invest this amount in risk-free government bonds. Ignoring taxes and transaction costs, calculate the required rate of return of Z Co. stocks before and after the proposed investment. What are the company's market value and its coefficient after the investment? (5 pt.) The company Z Co. has a 6 of 2.1 and a market value of 9.5 billion. Assume that the company is financed with 50% debt and 50% equity, that the risk-free interest rate is 6 per cent and that the required rate of return of an appropriate index of all shares on the stock exchange is 12.5 per cent. Z Co.'s management proposes to raise 4.25 billion in additional equity capital and to invest this amount in risk-free government bonds. Ignoring taxes and transaction costs, calculate the required rate of return of Z Co. stocks before and after the proposed investment. What are the company's market value and its coefficient after the investment