Use the following information for the next several questions. Consider a world of Perfect Capital Markets and M\&M's no-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. 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 2% 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. What is the firm's Return on Equity? b. What is the firm's WACC? 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. Write out the firm's New Balance Sheet? f. ) After issuing the new shares, what is the total number of outstanding? g. What is the firm's new Weighted Average Cost of Capital