n is an all-equity, zero-growth firm looking to recapitalize by issuing debt and repurchasing ost recently reported EBIT was $2,500,000 and the current cost of equity is 12.5%. The firm , a corporate tax rate of 35%, and there are no personal taxes on investment 2. Alpha Corporation shares. The firm's m has 500,000 income. a. What is the current value of the firm as an all-equity firm shares outstanding ? (1 point) Now assume tha t Alpha recapitalizes by issuing $9,500,000 in debt with an interest rate of 8% and using the proceeds to repurchase equity at their initial book value. b. What is the change in overall firm value due to the recapitalization? (1 point) c. What is the change in Alpha's WACC due to the recapitalization? (4 points) d. What is the anticipated change in share price due to the recapitalization? (4 points) n is an all-equity, zero-growth firm looking to recapitalize by issuing debt and repurchasing ost recently reported EBIT was $2,500,000 and the current cost of equity is 12.5%. The firm , a corporate tax rate of 35%, and there are no personal taxes on investment 2. Alpha Corporation shares. The firm's m has 500,000 income. a. What is the current value of the firm as an all-equity firm shares outstanding ? (1 point) Now assume tha t Alpha recapitalizes by issuing $9,500,000 in debt with an interest rate of 8% and using the proceeds to repurchase equity at their initial book value. b. What is the change in overall firm value due to the recapitalization? (1 point) c. What is the change in Alpha's WACC due to the recapitalization? (4 points) d. What is the anticipated change in share price due to the recapitalization? (4 points)