Part 2 30 marks. Justify your answer. Show two decimals in your answer 011. (10 marks) Consider a world of MM with notes and perfect capital markets. The XYZ Corp is currently equity-owned. Its earnings are Sim per year and will stay that way in perpetuity. The value of the firm is som There are a total of 1 million shares outstanding. The beta of equity is 12. The firm considers issuing a perpetua sede a risk-free interest rate of 4% and using it to repurchases of out. The beta teiser (1) What would be the return on equity under new capital structure 12) What is the difference between thee of the fem before and at the change in the coutureThat is the value of the firm goes by after the change in the castructuration Fathe Explain your answer. No explanation orification, then you get not