Optimal Capital Structure with Hamada Beckman Engineering and Associates (DEA) is considering a change in its capital structure. BE currently has $20 million in debt carrying a rate of 7%, and its stock prices $40 per share with 2 million shares outstanding BA szero growth firm and pay out all of its camings as dividends. The firm's EBIT is $17 million, and it faces a 25% federal-plus state crite. The market premium is, and the risk trevate is BEAs 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 borrow. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 115. BA habet of 10 What we nevered beta? Use market value D/S (which the same as www.) when unlevering. Do not round Intermediate calculations. Round your answer to two decimal b. What are sew beta and cost of equity if it has 35% debt? Do not round Intermediate calculations. Round your answers to two decimal places Deta Cost of equity c. What is BA'Y WACC with 35% debe? Do not round betermediate calculations. Round your answer to two decimal places What is the total value of the firm with 35% debt? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1.234,000. Round your answer to three decimal places 5 million