You are looking at following on ABC Company. ABC 2019 Annual sales are $100,000. Sales are expected to grow at 3% every year. The cash flows in 2019 have been distributed. The firms enterprise value is evaluated as a claim to its cash flows starting from 2021. Profit margin for ABC is expected to be 26%. Tax rate is 0. ABC is expected to reinvest 33% of its NOPAT in fixed assets and net working capital. ABC has an equity beta of 1.3. ABC is financed with 30% debt and 70% equity. ABCs debt is risk free, with a beta of 0. The risk free rate of return is 2.5%, and the expected market risk premium is () = 5%. a) Calculate ABCs enterprise value to FCF ratio, EV to NOPAT ratio, and EV to Sales ratio in 2019. b) Estimate the current enterprise value of ABC in 2019. c) Suppose the firm adjusts its capital structure. Without changing the underlying cash flows, the firm issues some debt and buys back some equity. Now debt is 50% and equity is 50%. Suppose debt is still risk free and has a beta of 0. What is the beta of new equity?