Spam Corp. is financed entirely by common stock and has a beta of.95. The firm is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price-earnings ratio of 7.40 and a cost of equity of 13.51%. The company's stock is selling for $62. Now the firm decides to repurchase half of its shares and substitute an equal value of debt. The debt is risk-free, with an interest rate of 5.5%. The company is exempt from corporate income taxes. Assume MM are correct. a. Calculate the cost of equity after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.) b. Calculate the overall cost of capital (WACC) after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.) c. Calculate the price-earnings ratio after the refinancing. (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Calculate the stock price after the refinancing. e. Calculate the stocks beta after the refinancing. (Round your answer to 1 decimal place.) Answer is complete but not entirely correct. a. 21.50 X % b. Cost of equity Cost of capital Price-earnings ratio 13.50 X % C. 4.65