Proposition II (No Taxes) Years later, Case Corp and Western Tech have grown steadily but continue to be identical except for their capital structures. Neither firm pays taxes. Now both firms have EBIT of $100,000 in perpetuity. Case Corp continues to be unlevered and has equity worth $1,000,000 in stocks (the number of shares is unspecified). Western Tech has stock worth $600,000 (number of shares unspecified) and has a new cost of debt of 8%. (Note that this is a new set of facts. Do not use facts from Proposition I to solve this problem) a) If you own $45,000 worth of stock of Western Tech, what percentage of the company do you own and what rate of return should you, as an individual investor, expect? (1.0 pts) b) What is the cost of equity for Case Corp? (1.0 pts) c) What is the cost of equity for Western Tech? (1.0 pts) d) What is the WACC for Case Corp? (1.0 pts) e) What is WACC for Western Tech? (1.0 pts)