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Beckman Engineering and Associates (BEA) is constdering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 7%,

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Beckman Engineering and Associates (BEA) is constdering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 7%, and its stock price is 540 pen share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its eacnings as dividends. The firm's EBIT is 515.851 million, and it faces a 40\% federal-phus-state tax rate. The market risk premium is 5%, and the risk.free rate is 7%. BEA is considenng increasing its debt level to a capital structure with 40\%w debt, based on market values, and repurchasing shares with the extra money that it borrows, BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt wits be 11%. BEA has a beta of 1.1 . a. What is BEA's unlevered beta? Use market value D/S (which is the same as wa/wo) when unlevering. Do not round iatermediate calculations. Round your answer to two decamal places. b. What are BEA's new beta and cost of equity if it pas 40% debt? Do not round intermediate calculations. Round your answeis to two decimat piaces. Beta) Cost 6 equity E. What are BEA's WMCC and total value of the firm with 40% debt? bo not round intermediate cakcularions. Aound your answer to two decimal places. What is the total value of the firm woth 405 debt? Enter your answeis in mullom. for example, an answer of 510,550,000 should be entered as 10.55 . Do noe round intermediate calcubtions, Round your answer to three decimal ploces. millich

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