Need urgent answer and correct answer. The formula list given is also attached. Please need them as soon as possible and only correct ones with proper explanation.

Capital Asset Pricing Model (CAPM) E(R, )= R, + B, E(R. )-R, ] Modigliani and Miller Proposition I (no tax): V1 = Vu Proposition II (no tax): R = R. +(R. -R. ) Proposition I (with corporate tax): V, = V, + ID Proposition II (with corporate tax): R = R. + (R. - R. [1-I.) Miller (1977) VI =V + 1- (1- 7 1 - I. ) D 1-IMayo plc is nanced by 31 million shares of equity with a market capitalisation of 74.4 million, and debt will! a face value and market value of 30 million. The interest rate on the debt is 7.5% and debt interest is tax deductible. The firm's most recent earnings before interest and tax is 16.25 million. The corporate tax rate is 21%. There are no market imperfections apart from corporate tax. a) What are Mayo's current earnings per share, share price, and cost of equityr (return on equity)? {5 marks]: Suppose the rm decides to change its capital structure by holding a rights issue to raise enough cash to reduce the debt to 15 million. The rights price will be at a 20% discount off the current share prioe. b) How manyr new shares must be issued in the rights issue? What will be me new earnings per share? {5 marks} c) What is Mayo's share price following the rights issue? [5 marks} d) What is Mayo's cost of equity following the rights issue? Has it changed? wnyrwhy not? {4 marks) 13) What will be the change in wealth for a shareholder who had 1000 shares in Mayo before the rights issue? Wily? Will the rights issue suooeed? Explain. {6 marks} [Total = 25 marks) END OF PAPER