Use the following information for the next several questions. Consider a world of Perfect Capital Markets and M\&M's with Corporate Tax theory of capital structure is true. Company Y is financed has the following market value balance sheet: Assets = $900.00 Liabilities =$450.00 Equity =$450.00 The firm had $63.00 in EBIT last year, and has just paid its annual dividend. The firm has 50 shares outstanding. The firm expects these same returns for the foreseeable future. The firm is a zero growth firm that pays out all excess earnings as a once per year end of year dividend. The firm's tax rate is 20%. Any time the firm changes its capital structure; it changes only the debt/equity mix and does not change its total physical assets. The firm's liabilities consist entirely of perpetual debt with annual interest payments. The firm's debt is risk-less, selling at par, and has a 3% current yield. If the firm were to change its capital structure, new debt would still have a 2% yield. The market risk premium is 6%. Given this information, answer the following questions: a. (3 points) What is the firm's Return on Equity? b. (3 points) What is the firm's WACC? c. (3 points) What is the Beta of the firm's levered equity? Now assume that the above firm redeems $450.00 in debt and uses the funds to issue equity. This change in capital structure reveals no new information about future firm prospects. e. (3 point) Write out the firm's New Balance Sheet? f. (3 points) After issuing the new shares, what is the total number of shares outstanding? g. (3 points) What is the firm's new Weighted Average Cost of Capital