ABC and XYZ are identical except for capital structure. ABC is all equity firm with 750,000 in stock. XYZ has 375,000 of debt at 5% interest cost. Both firms have EBIT of $75,000. (a.) RICO owns $30,000 of XYZ stock. What rate of return is he expecting? (b.) Show how he could get identical cash flows from ABC (c.) What is the cost of equity for each? (d.) What is the cost of capital for each?