i need help on B and C

Optimal Capital Structure with Hamada Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 milion in febt carrying a rate of 6\%, and is stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth firm and pays out ail of its earnings as dividends. The firm's EBIT is 513 million, and it faces a 25% federai-plus-state tax rate. The market risk premium is 5%, and the risk-free rate is 5%. BEA is considering increasing its debt level to a capital structure with 35% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be B\%. BEA has a beta of 1.0. a. What is BEA's unlevered beta? Use market value D/S (which is the same as wd/wB ) when unlevering. Do not round intermediate caleulations. Round your answer to two decimal places. b. What are BEA's new beta and cost of equity if it has 35% debt? Do not round intermed ate calculations. Round your answers to two decimal places. Beta: Cost of equity