Suppose the market value of a firms equity is worth $100m and the market value of its debt is worth $50m. Also, assume equity beta and debt beta to be 1.2 and 0.3 respectively. Return on debt is 6%. If the market risk premium is 10% and the risk free rate is 3%, calculate:

a) Expected return on equity

b) WACC using the return on equity from above and the return on debt

c) Asset beta using the equity beta and debt beta

Suppose the firm discussed above decides to alter its capital structure by repurchasing $20m in equity. It repurchases the $20m in equity by raising $20m in debt. Assume that the debt beta increases to 0.5

d) What is the market value of the firm?

e) What is the asset beta?

f) What is the new equity beta?

g) What is the return on equity?

Please show all calculations.