Please help.

mmrp. is currently an allequitynn that currently has assets worth $200 million. [in average, the return on the assets {RDA} every year is 15 percent. That is, on average, EBIT is 16 percent of the value of the assets. However, there are uctuations in the annual return such that the beta of the RDA is 1.25. 'lhe marginal corporate tax rate for mmrp. is .25 [i.e., 25%}. The personal tax rate of dividend and capital gains distributions is equal to that for interest income for debt; both types of tax rates are 28 percent. The rm currently has 10,000,000 shares outstanding. 'lhe management of mmrp. is thinking about doing a leverage recapitalization whereby it raises $40 million in debt at an interest rate of 2 percent and uses all of the proceeds of the sale of the debt to repurchase shares from current equity holders. Once it does this debtfrepurchase transaction, the uctuations in the EBIT are such that mmrp. can always afford to make its debt payments. Thus, the interest rate on the debt is the riskfree rate. 'lhe riskfree rate is .02 and the expected return on the market is .10. uesons: 1. According to CAPIv'I, what is the required rate of return on the rm's assets prior to the leveraged re-capitalizaon? What is the rm's weighted average cost of capital prior to the leveraged re cap? [2 points} 2. Prior to the recapitalization, what is the value of the rm? What is the value of equ ity? {2 points] Firm v'alue: Equity 'v'alue: 3. Alter the recapitalization, what is the total value of the rm? {2 points] 4. Alter the recapitalization, what is the total value of the equity? [2 points}