Hargrove, Inc. manufactures industrial valves. Hargrove has expected Sales of $133,674$ per year. SG&A and COGS make up about $$0\mathrm{.}95$ of every dollar of Sales in a typical year. Sales growth is expected to be flat. As a result, Hargrove expects CAPEX to be equal to depreciation expense going forward, and they do not expect to any investments in working capital. Hargrove has assets worth about $10,000.$ Hargrove$$s firm beta is $4\mathrm{.}53.$ The market risk premium is $5\%$ and the risk free rate is $5\%.$

Currently, Hargrove, Inc. is financed with $100\%$ equity and has $1,000,000$ shares outstanding. Hargrove is considering a $$debt for equity swap$.$ A debt for equity swap involves a firm issuing debt and using the proceeds to pay a $$special dividend$$ to equity holders. Hargove$$s CFO Karen Fich has told Mike that she thinks that Hargrove could manage a debt load of about $33\%$ of the firm$$s total capitalization. She has spoken to several banks and received favorable reaction. She estimates from talking to the bankers that the debt will have an interest rate of $11\%$ and a $30$ year term. Karen expects that the debt will have a beta of $0\mathrm{.}38.$

$1.$ What is Hargrove worth before they engage in the debt for equity swap?

$2.$ What is Hargrove$$s Value add?

$3.$ What is the price per share of Hargrove$$s equity?

$4.$ What is Hargrove$$s equity beta?

$5.$ What is Hargrove$$s cost of equity capital?

$6.$ What is Hargrove$$s WACC?