6. What does capital structure theory attempt to do? What lessons can be learned from capital structure theory? Be sure to address the MM models. 7. What does the empirical evidence say about capital structure theory? What are the implications for managers? 8. With the preceding points in mind, now consider the optimal capital structure for PizzaPalace. (1) For each capital structure under consideration, calculate the levered beta, the cost of equity, and the WACC. (2) Now calculate the corporate value for each capital structure. 9. Describe the recapitalization process and apply it to PizzaPalace. Calculate the resulting value of the debt that will be issued, the resulting market value of equity, the price per share, the number of shares repurchased, and the remaining shares. Considering only the capital structures under analysis, what is PizzaPalace's optimal capital structure?