Company DEbtagnian is financed with 60% debt and 40% equity while Company Equine is financed with 100% equity. The firms are alike in all but their capital structure and they can borrow at the risk-free of 12%. Rose owns 1% of the common stock of DEbtagnian. What other package (I mean an 6 investment in Company Equine) would produce the identical cash flow for Rose? Show all of your work and prove that the cash flows for the investment strategies are the same. Note that you are purchasing the stock of the unlevered firm and then levering up the investment yourself. Assume that the total value of DEbtagnian is $100 and comprised of $60 of debt (at 12% interest) and