Currently, Forever Flowers Inc. has a clpital structure consisting of 25% debt and 75% equity. Forever's debt currently has an 8% yield to maturity. The risk-free rate (TRF) 18 5%, and the market risk premium (M - rov) is 6%. Using the CAPM, Forever estimates that its cost of equity is currently 14,5%. The company has a 40% tax rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Do not round Intermediate calculations. Open spreadsheet . What is Forever's current WACCP Round your answer to two decimal places b. What is the current beta on Forever's common stock Round your answer to two decimal places c. What would Forever's beta be if the company had no debt in its capital structure? (That is what is Forever's unlevered beta, bu?) Round your c. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unlevered beta, bu?) Round your answer to two decimal places. N Forever's financial staff is considering changing its capital structure to 40% debt and 60% equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to 9.5%. The proposed change will have no effect on the company's tax rate d. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round your answer to two decimal places e. What would be the company's new WACC If it adopted the proposed change in capital structure? Round your answer to two decimal places 96 f. Based on your answer to parte, would you advise Forever to adopt the proposed change in capital structure? A 1 Recapitalization 2 3 % debt in original capital structure, Wa 4 % common equity in original capital structure, we 5 Yield to maturity on debt, 6 Risk-free rate. For 7 Market risk premium (R) 8 Cost of common equity.rs 9 Tax rate 10 11 % debt in new capital structure, Wa New 12%.common equity in new capital structure. We Now 13 Changed yield to maturity on debt, a new 14 15 Current WACC calculation LAC 25.00% 75.00% 8.00% 5.00% 6.00% 14.50% 40.00% 40.00% 60.00% 9.50% Formulas