a Hanover Tech is currently an all equity firm that has 700,000 shares of stock outstanding with a market price of $30.00 a share. The current cost of equity is 15 percent and the tax rate is 21 percent. The firm is considering permanently adding $13,650,000 of debt with a coupon rate of 10 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity? Round your answer to the nearest whole dollar, but don't include the $ sign. HINT. First get the value of the unlevered firm. Then calculate the value of the levered firm. The total value of any firm is the value of the debt plus the value of the equity. Numeric Response You currently own 800 shares of JKL, Inc. JKL is currently an all equity that has 800,000 shares of stock outstanding at a market price of $40 a share. The company's earnings before Interest and taxes are $6,400,000. JKL recently decided to issue $3,200,000 of debt at 6 percent interest. This debt will be used to repurchase shares of stock. Ignore taxes and answer the following two questions: Part A:What is JKLs target debt to asset ratio? Part B: How many shares of JKL stock must you sell to undo the leverage? Assume that you can loan out those funds at 6 percent interest