Currently, Forever Flowers ine, has a capital structure consiating of 25% debt and 75% equity. Forever's debt currently has an 7% yield to maturity, The risk, free rate (rRf) is 5%, and the market risk premlum ( FM - RRF ) is 4%. Using the CAPM, Forever estinates that is cost of equity is curremtly 14.5%. The company hes a 40% tax rate. a. What is forever's current waCCR 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 iss capital structure? (That is, what is Forevor's unlevered beta, bu?) Do net found intermediate calculations, flound vour answer to two decimal places. Fortver'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 nise to 10%. The proposed change wil have no effect on the cornpony's tax rate. d. What would be the company's new cost of equity if it adopted the proposed change in capted structure? Do not round internediate calculations, Round your answer to two decinial olaces. 6. What wnald be the company's new Wace if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places. Dased an vour answer to part e, nould yow advise Forever to adopt the proposed change in cepital atructure