Need help answersing these four questions

Answer on your Scancun Use the following information to answer Questions 21 through 24: ABC company and XYC company are identical firms in all respects except for their capital structures. ABC is all equity financed with $15 million in stock. XYC has $7.5 million in stock and $7.5 million in perpetual debt outstanding. XYC has an interest rate on its debt of 5%. Both firms expect their EBIT to be $1,250,000 per year, in perpetuity. Assume a perfect MM world with no taxes or bankruptcy costs and assume that individuals can borrow and lend at 5%. Question 21 If an investor owns $600,000 of the stock of XYC, what rate of return are they expecting to earn? a) 8% b) 8.33% c) 11.67% d) 16.67% e) None of the above Question 22 Suppose an investor who owns $600,000 of the stock of XYC wants to earn the same rate of return by investing in ABC and using home made leverage. What amount of ABC stock would this person purchase? a) $300,000 b) $600,000 c) $900,000 d) $1,200,000 e) None of the above Page 13 Question 23 The cost of equity of ABC and XYC respectively are: a) 5% and 8.33% b) 8.33% and 5% c) 11.67% and 8.33% d) 5% and 11.67% e) None of the above Question 24 The WACC of XYC is: a) 5% b) 6.67% c) 8.33% d) 11.67% e) None of the above