Here is another firm, Sweet Carolina, trying to issue debt and buy back stocks to change its capital structure.

Before the restructuring, Sweet Carolina has 80,000 shares outstanding, with market value of $100 per share. The annual free cash flow is predicted to be $1,700,000. The company decided to issue $2,500,000 debt at 8% interest rate. The corporate tax rate is 40%. There is no personal tax.

1. What is the WACC before the share repurchase?

2. What is the WACC after the share repurchase?

3. Complete the data table below and plot the levered value of the firm as a function of debt.Make sure your chart is professional-looking and acceptable to a supervisor.