RECAPITALIZATION Currently, Forever Flowers Inc. has a capital structure consisting of 35% debt and 65 equity Forever's de curent has an 896 yield to maturity The e 5 6, and the market risk premium n-rRF is 5% Using the CAPM Forever estimates that its cost of equity is currenti, L1 o The company has a 40 % tax rate a. What is Forevers current WACC? Round your answer to two decimal places b. What is the current beta on Forever's common stock? Round your answer to two decimal places. te iE C. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unlevered beta, bu?) Do not round intermediate calculations. Round your answer to two decimal places. Forever's financial staff is considering changing its capital structure to 409 de t and 60% e ity f the company went ahead it the proposed change the y eld to maturity on the company's bonds would rise to 10%. The proposed change will have no effect on the company's tax rate. d. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places. e. What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to two decimal places. f. Based on your answer to part e, would you advise Forever to adopt the proposed change in capital structure? -Select- Check My Work