6220" 18 Alpha Corporation and Beta Corporation are identical in every way except their capital structures. Alpha Corporation, an all-equity firm, has 7,000 shares of stock outstanding, currently worth $23 per share. Beta Corporation uses leverage in its capital structure. The market value of Beta's debt is $38,000, and its cost of debt is 9 percent. Each firm is expected to have earnings before interest of $32,000 in perpetuity. Neither firm pays taxes. Assume that every investor can borrow at 9 percent per year. What is the market value of Beta Corporation's equity? 19 A new product has start-up costs of $389,200 and projected cash flows of $102,000, $187.500, and $245,000 for Years 1 to 3, respectively. What is the profitability index given a required return of 14 percent