Problem Matteo Management Inc. has an unlevered cost of equity is 13% and a pre-tax cost of debt of 6%. Both the book and the market value of debt is $500,000. Earnings before interest and taxes (EBIT) are $200,000 (constant in perpetuity) and the tax rate is 35%. Assume there is no cost of financial distress. a) What is the value of the unlevered company? (2 marks) b) What is the value of the levered company? (2 marks) c) What is the cost of levered equity? (4 marks) d) What is the companys weighted average cost of capital? (2 marks) Show your work.