Robo LLC has no debt and a beta of 1.50. Robo expects free cash flow of $25 million per year forever. If Robo is considering a change: by issuing debt to buyback stock to have a 30% debt- equity ratio that it will maintain this ratio forever. With this change assume Robo's cost of debt capital will be 6.50% and their tax rate is 35%. If the expected market return is 11% and the risk free rate is 5% answer the following questions: What is the equity cost of capital and the WACC before the change takes place? What is the equity cost of capital and the WACC after the change takes place? With the change what is the value of the tax shield