Question $2(20$ marks$)$Alpha Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firms debt$-$equity ratio is expected to rise from $35$ percent to $50$ percent. The firm currently has $$2\mathrm{.}7$ million worth of debt outstanding. The cost of this debt is $6\mathrm{.}4$ percent per year. The firm expects to have an EBIT of $$940,000$ per year in perpetuity and pays no taxes. $($Assume no effect of taxes$)$