eBook Problem Walk-Through Capital Structure Analysis Pettit Printing Company (PPC) has a total market value of $100 million, consisting of 1 million shares selling for $50 per share and $50 million 10% perpetual bonds now selling at par. The company's EBIT is $10.60 million, and its tax rate is 15%. Pettit can change its capital structure either increasing its debt to 75% (based on market values) or decreasing it to 25%. If it decides to increase its use of leverage, it must call it old bonds and issue new ones with a 14% coupon. If it decides to decrease its leverage, it will call its old bonds and replace them with new 7 coupon bonds. The company will sell or repurchase stock at the new equilibrium price to complete the capital structure change. PPC expects no growth in its EBIT, SO OL is zero. Its current cost of equity, rs, is 14%. If it increases leverage, r will be 16%. If it decreases everage, rs will be 13%. What is the firm's WACC and total corporate value under each capital structure? Do not round intermediate calculati Enter your monetary answers in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answers to three decimal places. 50% debt 75% debt 25% debt WACC % Total corporate value $ million million million % % $ $ $