Thank you guys!

CoursHeroTranscribedText: Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company's EEilT was SLED million last year and is not expected to grow. PizzaPalace is in the 25% state-plus-federal tax bracket, the risk-free rate is 6 percent, and the market risk premium is 6 percent. The firm is currently nanced with all equity, and it has 113 million shares outstanding. When you took your corporate finance course, your instructor stated that most firrns' owners would be nancially better off if the firms used some debt. When you suggested this to your new boss, he encouraged you to pursue the idea. If the company were to recapitalize, then debt would be issued, and the funds received would be used to repurchase stock. f-'is a first step, assume that you obtained from the firm's inyestment banker the following estimated costs of debt for the firm at different capital structures.- Percentage Financed with Debt, Wa a. Using the free cash flow valuation model, show the only ayenues by which capital structure can affect yalue. b. {1} What is business risk? What factors influence a firm's business risk? {2} What is operating leverage, and how does it affect a firm's business risk? Show the operating breakeyen point if a company has fixed costs of SEED, a sales price of $15, and yariable costs of 31:3. Show stepbystep formulas and hopefully they aren't so small as to not be read