Case 1: Rubber Land (RBL) produces and sells rubber gloves with various brand names and applications, including healthcare and medical, food processing and manufacturing. It sells one carton for 4,000.00 THB. The firm's total fixed costs are 1,680,000 THB, and its variable cost per one carton equals 2,800.00 THB. Recently, the firm produces and sells 1,250,000 cartons, and its net profits was 875,000 THB.. Assume risk-free rate is 1.20%, return on market is 10.40%, and corporate tax rate is 20%. The manager of Rubber Land is considering a change in its capital structure (recapitalization). The company has constant growth rate of 4.50%, and its EBIT is 1,300,000 THB. Today, the firm is financed with 5% debt and 95% common equity. Beta of the company is 1.25, the interest rate on debt (before-tax) is 7.00%. After recapitalization, the companys new target capital structure is expected to be 14% debt, and 86% common equity, and manager expects that the interest rate on new proportion of debt will increase to 8.60% (before-tax). 1. Calculate the break-even point (QBE) in cartons 2. If the firm reduces variable costs by 400 THB per carton, what is the new break-even point? in cartons 3. What is the current WACC of the firm? 4. Calculate unlevered beta (use Hamada equation), then round to 2 digits after decimal. 5. What is the new beta if it recapitalizes? 6. What is the new cost of equity after it recapitalizes? 7. What is the new WACC of the firm