Proktor and Gramble (PKGR) has historically maintained a debt-equity ratio of approximately 0.20. Its current stock price is $50 per share, with 2.5 billion shares outstanding. The firm enjoys very stable demand for its products, and consequently it has a low equity beta of 0.5 and can borrow 42% ist 20 basis points over the risk-free rate of 4,0%. The expected return of the market is 100% and PKGR's tax rate is 35% a. This year, PKGR is expected to have free cash flows of $6.0 billion. What constant expected growth rate of free cash flow is consistent with is current stock price? b. PKOR believes it can increase debt without any serious risk of distress or other costs with a higher debt-equity ratio of 0.5, it believes its borrowing costs will rise only slightly to 45%. PKGR announces that will raise its debl-equity ratio to 0.5 through a leveraged recap, determine the increase or decrease in the stock price that would result from the anticipated tax savings a. This year, PKOR is expected to have free cash flows of $6.0 billion. What constant expected growth rate of free cash flow is consistent with its current stock price? The constant expected growth rate of troo cath flow in consistent with its current stock price is % (Round to two decimal places) b. PKGR believes it can increase debt without any serious risk of distress or other costs. With a higher debt-oquity ratio of 0.5, it beloves its borrowing costs will rise only slightly to 4.5%. PKGR announces that it will raise its debt-equity ratio to 0.5 through a kiveraged recap, determine the increase or decrease in the stock price that would result from the anticipated tax saving Increase for decrease in stock price is $(Round to the nearest cent. Use a minus sign to indicate a negative number)