Question 1. You are a corporate finance analyst at a management consulting firm, which has been approached by a company for advice on its capital structure decisions. The company, Boston Turkey Inc. has been in existence for only two years, and its stock is currently trading at $20 per share (There are 100,000 shares outstanding.) The following are the most recent financial statements of the company: Income Statement Revenues Expenses Depreciation EBIT Interest Expense Taxable Income Tax Net Income 1.000.000 $400,00 $100,000 S500,000 $100,000 $400,000 S160,000 S240,000 Balance Sheet $1,000,000 Accounts payable$500,000 S500,000 Long Term Debt 1,500,000Equity (100,000 Current Assets $1,000.000 $1,500,000 Land & Buildings Property, Plant & ent shares) Total Assets S3,000,000 Total Liabs. & $3,000,000 Equity Due to its limited history, the beta of the stock cannot be estimated from past prices. You do have information about comparable listed firms and their betas Debl/Equity Ratio Firm Arizona's Baked Chicken Barbee's Chicken Eyepop's Chicken Beta 1.05 1.20 0.90 20% 50% 10% 70% Bob Roy Chicken &Fish 1.35