Alpha Corporation and Beta Corporation are identical in every way except their capital structures. Alpha Corporation, an all$-$equity firm, has $10,500$ shares of stock outstanding, currently worth $$25$ per share. Beta Corporation uses leverage in its capital structure. The market value of Beta's debt is $$60,500,$ and its cost of debt is $7$ percent. Each firm is expected to have earnings before interest of $$70,500$ in perpetuity. Neither firm pays taxes. Assume that every investor can borrow at $7$ percent per year.

a$.$ What is the value of Alpha Corporation? $($Do not round intermediate calculations.$)$

b$.$ What is the value of Beta Corporation? $($Do not round intermediate calculations.$)$

c$.$ What is the market value of Beta Corporation's equity? $($Do not round intermediate calculations.$)$

d$.$ How much will it cost to purchase $20$ percent of each firm's equity? $($Do not round intermediate calculations.$)$

e$.$ Assuming each firm meets its earnings estimates, what will be the dollar return to each purchase in part $($d$)$ over the next year? $($Do not round intermediate calculations.$)$

Answer is not complete.

$\backslash$table$[[$a$.,$Value of Alpha,$$,262,500],[$b$.,$Value of Beta,$$,262,500],[$c$.,$Market value of Beta's equity,$$,202,000],[$d$.,$Invest in Alpha,$$,52,500],[,$Invest in Beta,$$,40,400],[$e$.,$Alpha dollar return,$$,14,100],[,$Beta dollar return,,$]]$