You have been tasked to assess the acquisition of XYZ Inc, a highly levered retailer, by ABC Inc, another retail company. You found the following information on the two companies: Company Market Value of Market Value of Debt Beta (levered) Equity ABC Inc $1000m $500m 1.05 XYZ Inc $200m $800m 2.90 The tax rate is 20% for all the firms. a. Estimate the unlevered beta of the combined company after the merger (6 points) b. ABC Inc is planning to issue shares to buy out XYZ's equity. In addition, it also wants to retire some of XYZ's debt. If ABC Inc would like to have a levered beta of 1.15 after the transaction, how much of XYZ's debt will it have to retire? (9 points) Use the Excel file called RetiringDebtProblem to solve the problem and upload it. If you choose to do it manually you need to upload a pdf file (you can create a pdf using your phone)