The firm currently has no debt. It has an 4. ABC Inc. is looking at recapitalizing its current structure. rate is 5% with a market risk premium of 6%. The firm is unlevered beta of 1, The current risk free expected to generate free cash flows of $35 million at an expected zero no short term investments, no preferred stock, and 10 million shares to recapitalize with a new capital structure of 30% debt and 70% e firm with a loan at 8%. If the c growth rate. The company ha outstanding. If the firm decided quity, the bank would provide the ompany recapitalizes, it will use the proceeds from debt issuance to ue of Operations, and price per share after the repurchase? axrate is 40%. Based on this information, what is the firm's weighted Average Cost of Capital, Value (10 total points) and