The answer is in the second picture, but I would like to know how to get those numbers. Thank you.

9. Your company has always issued securities whenever management feels the markets are good for these securities. Recently, the CFO of the company came across the notion that adjusting the capital structure might increase the market value of the firm dramatically. The CFO liked the idea and asked you to do some preliminary study on this issue. The company is currently very conservative with its leverage and has a D/E ratio of 10%. The beta of the firm is 1.05, the marginal tax rate is 34%, the risk-free rate is 8%, and the market risk premium is 5.5%. One of the directors is an investment banker and he has provided you with the following information: In addition, this year's EBIT =$120 million, Depreciation =$10.5 million, capital spending =$15 million, and the growth rate on free cash flows is estimated to be about 6% per year in perpetuity. a.) Fill in the blanks in the above table for beta, the cost of equity, cost of capital, and the value of the firm at each of the suggested D/E ratios. 9. a.) 9. Your company has always issued securities whenever management feels the markets are good for these securities. Recently, the CFO of the company came across the notion that adjusting the capital structure might increase the market value of the firm dramatically. The CFO liked the idea and asked you to do some preliminary study on this issue. The company is currently very conservative with its leverage and has a D/E ratio of 10%. The beta of the firm is 1.05, the marginal tax rate is 34%, the risk-free rate is 8%, and the market risk premium is 5.5%. One of the directors is an investment banker and he has provided you with the following information: In addition, this year's EBIT =$120 million, Depreciation =$10.5 million, capital spending =$15 million, and the growth rate on free cash flows is estimated to be about 6% per year in perpetuity. a.) Fill in the blanks in the above table for beta, the cost of equity, cost of capital, and the value of the firm at each of the suggested D/E ratios. 9. a.)