Rauch Ine.'s current stock price is \$2 per share and it has 300 million shares outstanding. The book value of its equity is $200 million and the book value of its debt is $400 million. Assume that the beta of the firm's debt is 0.5 and the beta of the firm's equity is 1.5. The risk-free rate is 3% and the expected return on the market is 9%. Assume that there are no taxes or other market imperfections. (a) What is Rauch's asset beta? What is Rauch's asset cost of capital? (4 pts) (b) Assume that Rauch Inc, issues an additional S100 million in debt and uses the proceeds to buy back its equity. What is Rauch's asset beta after recapitalization? What is Rauch's asset cost of capital after recapitalization? ( 2 pts) (c) After the recapitalization deseribed in part (b), Rauch's debt beta is now 0.6. What is Rauch's equity beta after recapitalization? What is Rauch's cost of equity after recapitalization? (4 pts) (d) From the standpoint of Rauch Inc. (i.e., the firm as a whole), what is the net present value (NPV) of the above-mentioned recapitalization? (2 pts)