TravelTech is unlevered and is valued at $640,000. TravelTech is currently deciding whether including debt in its capital structure. The current cost of equity is 12%. They are thinking of issuing $300,000 in new perpetual debt with an 8% interest rate. TravelTech would repurchase $300,000 of stock with the proceeds of the debt issue. There are currently 32,000 shares outstanding and their effective marginal tax bracket is zero. 1. What will be TravelTech's new value after levered recapitalization? (3 marks) 2. What is the new cost of levered equity? (4 marks) 3. What is the new WACC? (3 marks) (10 marks) **UPLOAD ONLY ONE PDF WITH ALL THE ANSWERS FOR THE WRITTEN QUESTIONS THROUGH THE UPLOAD BUTTON OF THE LAST OR THE FIRST QUESTION.**