MoneySmart is an all-equity company with a firm value of $30 million, and the cost of equity is 16%. The company plans to raise $5 million debt by selling 10% annual coupon bonds to the public, and the sale proceeds will be used to repurchase stocks and change the companys capital structure. a) Assume no taxes or bankruptcy costs, what will be the companys cost of capital after the repurchase? And what will be the cost of levered equity? b) If the company has a target cost of equity of 20%, what will be the target deb-to- equity ratio? And what will be the weight of the equity in the companys total financing?