Bruin Industries has a target debt to equity ratio of $0\mathrm{.}72.$ It can issue perpetual debt at $8\%.$ The company expects to generate $$123,000$ of earnings before interest and taxes in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of capital is $14\%,$ and the corporate tax rate is $40\%.$ Assume the risk free rate is $4\%,$ market return is $9\%,$ and the beta of debt is $0\mathrm{.}8.$ Answer the following:

a$.$ What is the value of the company as an unlevered firm?

b$.$ What is the required return on levered equity?

c$.$ What is the value of the company with leverage?

d$.$ What is the value of the company's equity, using the WACC approach?

e$.$ What is the value of the company's equity, using flow$-$to$-$equity $($FTE$)$ approach?

I