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4. Kahlua Inc. has no debt outstanding, and its financial position is given by the following data: Expected EBIT=$700,000 Growth rate in EBIT=0% Costs of equity =9% Shares outstanding 100,000 Tax rate =20% a. What is Kahlua 's intrinsic value of operations (i.e., its unlevered value)? What is its intrinsic stock price? lts earnings per share? b. Kahlua is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 25% debt based on market values, its cost of equity, rs, will increase to 11% to reflect the increased risk. Bonds can be sold at a cost, rd, of 6%. Based on the new capital structure, what is the new weighted average cost of capital? What is the levered value of the firm? What is the amount of debt