ABC Co. and XYZ Co.are identical firms in all respects except for their capital structure. ABC is allequity financed with $725.000 in stock. XYZ uses both stock and perpetwal debt in equal proportions, its stock is worth $362,500 and the interest rate on its debt is 8 percent. Both firms expect EBI to be $74.000 every year, forever. Ignore taxes, (Do not round intermediate calculations. Round the finol answers to 2 decimal ploces. Omit $ and % sign in your response.) 0. Richard owns $54,375 worth of XYZ 5 stock. What rate of return is he expecting? Rate of return b. Calculate the cash flows and rate of return by investing in ABC, and using homemade leverage, how Richard could generate exactly the 5 ame? c. What is the cast of equity for ABC ? What is it for XYZ ? d. What is the WACC for ABC ? For XYZ