Proposition I (No Taxes) Case Corp and Western Tech are two identical companies except for their capital structures. Neither firm pays taxes. Both firms have EBIT of $55,000 in perpetuity. Case Corp is unlevered and has 7,500 shares outstanding, each worth $25. Western Tech is levered and has $45,000 in debt at a cost of debt of Rd = 10%. a) How much is Case Corp worth? (1.0 pts) b) How much is Western Tech worth? (1.0 pts) c) What is Western Tech's market value of equity? (1.0 pts) d) How much would it cost to buy 50% of each company? (2.0 pts) e) Is Western Tech more risky than Case Corp? Please explain. (1.0 pts) Proposition I (No Taxes) Case Corp and Western Tech are two identical companies except for their capital structures. Neither firm pays taxes. Both firms have EBIT of $55,000 in perpetuity. Case Corp is unlevered and has 7,500 shares outstanding, each worth $25. Western Tech is levered and has $45,000 in debt at a cost of debt of Rd = 10%. a) How much is Case Corp worth? (1.0 pts) b) How much is Western Tech worth? (1.0 pts) c) What is Western Tech's market value of equity? (1.0 pts) d) How much would it cost to buy 50% of each company? (2.0 pts) e) Is Western Tech more risky than Case Corp? Please explain. (1.0 pts)