P.S. please note that answers $1629 and 6.2 are incorrect

ABC CD and XYZ CD are identical firms in all respects except for their capital structure ABC is all equity financed with $525,000 in stock XYZ uses both stock and perpetual debt; its stock is Mith $262,500 and the interest rate on its debt is 52 percent 80th firms expect EBITto be $57 ,OOO. Ignore taxes a. Rico owns $26,250 it,orth of XYZ's stock. What rate of return is he expecting? (Round your answer to 2 decimal places. (e.g 32.16)) Rate of return b. Suppose Rico invests in ABC Co and uses homemade leverage Calculate his total cash now and rate of returm (Round your percentage answer to 2 decimal places. (e.g 32.16)) Total cash now Rate of return