A firm wishes to change its present capital structure (D/E ratio) from (30%/70%) to (40%/60%). BL = 1.15 R+ = 3.0%, rm = 10.50%, Tax rate = 25.0%, number of shares outstanding (n) = 154 FCF. = $200, 81=0, Current Debt = $500, Current ro = 6.50% 1. What is their current business risk (Bu)? Answer the remaining questions for the new capital structure (40%/60%). 2. What will be their total risk (BL)? 3. What will be their required return on stock (ru)? 4. Their new ro= 7.0%. What will be their cost of capital (WACC)? 5. What is their value of Operations (Vop)? 6. What is the value of Total Debt and Equity? 7. How much new debt was added? 8. What is the Intrinsic Value of the firm V Total? 9. What is the Intrinsic Value of Equity Vequity? 10. What is the Price of the stock Po