Your firm has decided to spin off Android01 and Processor01 as a separate firm. The owners of the new firm will be equity holders and debt holders. After speaking with potential investors. Investment banks have identified two possible capital structures (structure of equity and debt ownership): Debt holders receive debt that pays them coupons of exist2 million a year, and exist30 million after 20 years (these are expected values as the coupons and principal payments are not riskless, the debt buyers realize the firms could default). They price the debt using a discount rate of 4 percent. Equity holders receive expected dividends of exist3 million starting from year 5. and growing at a rate of 4 percent per year (a growing perpetuity). They price the equity using a discount rate of 7.5 percent. Debt holders receive debt that pays them coupons of exist1 million a year, and exist12 million after 20 years (these are expected values as the coupons and principal payments are not riskless, the debt buyers realize the firms could default). They price the debt using a discount rate of 3.5 percent. Equity holders receive expected dividends of exist3.9 million starting from year 5. and growing at a rate of 4.5 percent per year (a growing perpetuity). They price the equity using a discount rate of 7 percent. Your firm receives all the proceeds from the sale debt and equity. Prepare a Capital Budgeting and Cost of Capital report that answers the following Question 13. Which particular capital structure should be chosen for the spin-off? Before starting your calculations, review the following materials: cost of capital and choice of financing equity, debt, and preferred stock Submit your Capital Budgeting and Cost of Capital Report to the dropbox below. Before you submit your assignment, review the competences below. Which your instructor win use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them in your work