$1.$ You are tasked with analyzing the capital structure policy for Grappler Inc., a small, national, online sports store that specializes in equipment and apparel for college, high school and youth wrestlers.$$ Grappler$$s EBIT was $$65$ million last year and is expected to remain constant. The firm has $12$ million shares outstanding and is currently $100\%$ equity.$$ Grappler has a $25\%$ state plus federal tax rate and a beta of $1\mathrm{.}1.$ The current risk$-$free rate is $5\%$ and the market risk premium is $6\%.$ If Grappler Inc., issues debt, it will face the following costs of debt: Pct Debt $($wd$)$ rd $0\%0\%20\%7\mathrm{.}5\%30\%8\mathrm{.}8\%40\%10\mathrm{.}4\%50\%12\mathrm{.}1\%$ a$)$ Using the current capital structure $($no debt$)$ calculate NOPAT, FCF $($no growth means $0$ net operating capital investment$)$ and WACC. b$)$ Calculate the value per share for Grappler. c$)$ For each capital structure $($debt level$)$ you are considering $(20\%,30\%,40\%,$ and $50\%$ debt$)$ calculate the levered beta, cost of equity and WACC for Grappler. d$)$ Calculate Grappler$$s corporate value and per share value at each proposed capital structure. e$)$ What is Grappler$$s optimal capital structure?