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Can you help me answer the e. Beta? The other answers are correct. Alpha Corporation and Beta Corporation are identical in every way except their

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Can you help me answer the e. Beta? The other answers are correct.

Alpha Corporation and Beta Corporation are identical in every way except their capital structures. Alpha Corporation, an all-equity firm, has 14,000 shares of stock outstanding, currently worth $30 per share. Beta Corporation uses leverage in its capital structure. The market value of Beta's debt is $64,000 and its cost of debt is 9 percent. Each firm is expected to have earnings before interest of $74,000 in perpetuity. Neither firm pays taxes. Assume that every investor can borrow at 9 percent per year. a. What is the value of Alpha Corporation? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the value of Beta Corporation? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the market value of Beta Corporation's equity? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d. How much will it cost to purchase 20 percent of each firm's equity? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) e. Assuming each firm meets its earnings estimates, what will be the dollar return to each position in part (d) over the next year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) \begin{tabular}{|l|rr|} \hline a. Value of Alpha & $ & 420,000 \\ \hline b. Value of Beta & $ & 420,000 \\ \hline c. Market value of Beta's equity & $ & 356,000 \\ \hline d. Alpha & $ & 84,000 \\ \hline d. Beta & $ & 71,200 \\ \hline e. Alpha & $ & 14,800 \\ \hline e. Beta & & \\ \hline \end{tabular}

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