JCB, Inc is considering a change in its capital structure. JCB currently has $50 million in debt carrying a rate of 9% and its stock price is $40 per share with 4 million shares outstanding. JCB is a zero-growth firm and pays out all of its earnings as dividends. The firm's EBIT is $16 million and it faces a 25% tax rate. The market risk premium is 6% and the risk-free rate is 4%. JCB is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the proceeds. JCB will have to retire the old debt in order to issue new debt and the rate on the new debt will be 10%. JCB currently has a beta of 1.0. What will be the total value of the firm with 40% debt? $132.930,514 $127,978,216 $122,766,123 $124,386,252 Albula Company's beta is 1.4 and its tax rate is 25%. If it is financed with 20% debt, what is its unlevered beta? 0.93 1.22 1.09 1.18