ABC Inc. has market firm value of $300,000. It has 10,000 shares and $120,000 of 4.5% perpetual debt that is selling at 90% of par. ABCs EBIT is $36,000 per year forever, and its tax rate is 30%. a) Calculate ABCs cost of equity, stock price, and WACC. b) Assume ABC announces that it will issue $160,000 additional perpetual debt to buy back equity. Calculate ABCs firm value, cost of equity, WACC, and stock price under the new capital structure. c) Assume ABC announces that it will issue additional perpetual debt to buy back 50% of the equity. Calculate ABCs firm value, cost of equity, WACC, and stock price under the new capital structure.

*Maximum of 4 decimal places for values*

*Please don't use excel, and show steps*