ABC Company and XYZ Company are Identical firms in all respects except for their capltal structure. ABC is all-equity financed with $575.000 in stock. XYZ uses both stock and perpetual debt; its stock is worth $287,500 and the interest rate on its debt is 8.5 percent. Both firms expect EBIT to be $64,000. Ignore taxes. 0. RICo owns $34,500 worth of XYZ's stock. What rate of return is he expecting? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Suppose Rico invests in ABC Company and uses homemade leverage. Calculate his total cash flow and rate of return, (Do not round Intermedlate calculations ond enter your rote of return onswer os o percent rounded to 2 decimal places, e.g., 32.16.) c. What is the cost of equity for ABC and XYZ ? (Do not round intermedlate colculations and enter your onswers as o percent rounded to 2 decimal ploces, e.g., 32.16.) d. What is the WACC for ABC and XYZ ? (Do not round Intermedlate calculations and enter your onswers os o percent rounded to 2 declmal ploces, e.g., 32.16.)