ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is all equity financed with $525,000 in stock. XYZ uses both stock and perpetual debt: its stock is worth $262500 and the interest rate on its debt is 5.3 percent Both firms expect EBITt0 be $57,000. Ignore taxes. a. Rico owns $26.250 worth of XYZ?s stock. What rate of return is he expecting? (Round your answer to 2 decimal places. (e.g., 32.16)) b. Suppose Rico invests in ABC Co and uses homemade leverage. Calculate his total cash flow and rate of return. (Round your percentage answer to 2 decimal places. (e.g., 32.16)) c. What is the cost of equity for ABC and XYZ? (Round your answers to 2 decimal places. (e.g., 32.16)) XYZ d. What is the WACC for ABC and XYZ? (Round your answers to 2 decimal places. (e.g., 32.16))