Wilsons' Building Limited is financed entirely by common stock currently valued at $34 per share and has a beta of 1.3. The company is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price earnings (P/E) ratio of 4 and their cost of equity is 7.6%. Wilsons' now decide to repurchase half of their shares and substitute an equal value of debt which has a beta of 0.8 and has a rate of return of 3.5%. Assume no taxes and that Modigliani and Miller are correct. Calculate the following under the new capital structure: a) The cost of equity (2 marks) b) The overall cost of capital (1 mark) c) The stock price (1 mark) d) The beta of the stock (2 marks)