The BA720 Company has $15 million in pretax income, a tax rate of 30%, and a capital structure mix that is comprised of 78% in equity and 22% million in long term debt [market value basis]. The cost of debt is 9% and cost of equity is 12%. The AB300 Company is identical to the BA720 Company (information in previous problem) in every respect save two: it is debt free and its cost of equity is 11.5%. a) Explain the difference in values for AB300 versus BA320. b)Using the information from the two previous problems above, what is the Capital Structure mix on a dollar value basis for the BA707 and AB300 companies?