Fab Fabrics Inc. (Fab) currently has zero debt. Now the company is considering using some debt to repurchase stock at the current price, moving to a new capital structure consisting of either 20% debt, 40% debt or 60% debt. TIt is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise. Additional firm data related to capital restructuring is indicated below. a. Using CAPM equation, what is the unlevered beta of Fab? Note: Do not round intermediate calculations and round-off your final answers to 2 decimal places. b. Using Hamada equation, what would be the levered beta at 20% debt, 40% debt and 60% debt? Note: Do not round intermediate calculations and round-off your final answers to 2 decimal places. Levered beta @ 20\% debt Levered beta @ 40\% debt Levered beta@60\% debt c. Using the levered beta computed in (b) and CAPM equation, compute for the revised cost of equity at 20% debt, 40% debt and 60% debt. Indicate your answer in decimal form with 4 decimal places (i.e. 5.4465% should be entered as 0.0545%). Cost of equity @ 20\% debt Cost of equity @ 40\% debt Cost of equity @60% debt d. Using the revised cost of equity computed in (c), what would be the revised cost of capital if Fab revised its capital structure to consist of 20% debt, 40% debt and 60% debt?Indicate your answer in decimal form with 4 decimal places (i.e. 5.4465% should be entered as 0.0545% ). WACC @ 20\% debt WACC @ 40\% debt WACC @ 60\% debt e. Under the trade-off theory of capital structure, what is the optimal capital structure? How much is the estimated firm value if expected EBIT is $850,000 ? Note: Do not round intermediate calculations and round-off your final answers to 2 decimal places