QUESTION 5 Company X has an equity beta of l and 5 \"13 debt in its capital structure. The company has risk-free debt which costs 5% before taxes. and the expected rate of return on the market portfolio is 11%. Company X is considering the acquisition of a new project which is expected to yield 25% on after-tax operating cash flows. Company Y which is in the same product line (and risk class) as the project being considered. has an equity beta of 2.0 and has 20% debt in its capital structure. If Company X finances the new project with 50% debt. should it be accepted or rejected\"? Assume that the corporate tax rate, E, for both companies is 50%. Assume also perfect capital markets and ignore personal taxes and otation costs. Fate: The systematic risk of an unleyered company, L"= and the systematic risk of the equity of a leyered company. L_. are related by D L _ U _ if the companies are identical apart from Eapifalgst lctiu'g' D Elifiizlj denote the Tvalue of debt and equity of the leyered firm