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Anderson Aeronautics currently has a capital structure made entirely of equity with total invested capital of $ 1 2 million made up of 2 0

Anderson Aeronautics currently has a capital structure made entirely of equity with total invested capital of $12 million made up of 20,000 shares of common stock. They are considering issuing new debt to replace some of this equity. Anderson currently has a beta of [1.8] and is considering replacing $[4 million] in equity with new debt. Andersons current corporate tax rate is 20%. The interest rate (rd) on $4 million of debt is 10%. The interest rate (rd) on $5 million of debt is 12%. The interest rate (rd) on $6 million of debt is 14%. The risk-free rate is 6% and the return on the market is 12%. Anderson has an EBIT of $1,850,000.
A. What will be Andersons new levered beta if it replaces $[5 million] in equity with debt?
B. What will be Andersons weighted average cost of capital (WACC) if it utilizes $[5 million] in debt?
C. What are Andersons earnings per share (EPS) if it utilizes $[5 million] in debt?
For example, your discussion post should start out with a repost of the problem like this (Please choose at least one different number than my example for your post):

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