Colin's corporation has a perpetual stream of EBIT equal to $250m per year. The cost of capital for the unlevered firm is 12%. The firm incurs $30m of interest payments for the perpetual bonds it has issued. The cost of debt is 6%. The corporate tax rate is 40%. (20 marks) a) What is the value of the unlevered firm? (3 marks) b) What is the value of the levered firm? ( 6 marks) 3 Assignment III - FINA 3361 - Fall 2022 Submission Deadline: Nov 18th,2022, at noon ONLY Handwritten work is graded c) What is the value of equity of the firm if D/E is 0.35 ? (6 marks) d) If the levered beta of the firm is 1.5, what is its unlevered beta? ( 2 marks) e) If the D/E of the firm increases from 0.35 to 0.65, how does the levered beta changes (compare to ' d ')? How do you explain this change? (3)