An all-equity firm expects perpetual EBIT of $920,000. The firm has a cost of equity of 11.5% and a tax rate of 21%. The firm is considering issuing an amount of debt equal to 40% of the current value of the firm. The firm can borrow perpetual debt at 4.8%. a. What is the value of the unlevered firm? $6,320,000 b. How much debt would the firm issue? $2,528,000 c. What would be the value of the levered firm? $6,850,880 d. What would be the firms cost of equity after the debt is issued? 14.60% e. What would be the firms WACC after the debt is issued? 10.61