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Canalot Ltd is an all-equity company with a market value of exist30 million and a cost of capital of 18% per year. The company is proposing to repurchase exist5 million of equity and to replace with 13% irredeemable debt. Canalot's earnings before interest and tax are expected to be constant for the foreseeable future and all profits are paid out as dividends. Assuming Canalot Ltd has a marginal tax rate of 40% and using the assumptions of Modigliani and Miller, Compute: a. The value of the company b. The debt to equity ratio of the company c. The new cost of equity capital d. The revised weighted average cost of capital If the company goes ahead with the proposal