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Eecoman Enoineering and Associates (BEA) is considerino a diange in its capital structure. BrA currently has $70 million in debt coming a rate of 7%,

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Eecoman Enoineering and Associates (BEA) is considerino a diange in its capital structure. BrA currently has $70 million in debt coming a rate of 7%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth firm and pars eul or ks earnings as dividends. The firm's EBrr is $12 million, and it faces a 25% foderal-plus state tax rate. The market rist premium vilues, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new detit and the rate on the new debt will be 11%. BEA has a beta of 1.2 . calcolsions. Reund your answer to two decimal places. A. What are ESA's Dew beta and cost of equity if it has 40% debt? Do not round intermediate calculations. Round your answers to t decimal places. cont depuler: Qs c. What is aEAs wACC with 40% debt? Do not round intermediate calculations. Round your answer to two decimal places: 8= cansle, an arswer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answer to three decimal places. 4 8 milion

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