Optimal Capital Structure with Hamada Beckman Engineering and Associates (BEA) is considering a change in its capital sb'ucture. BEA curren'd'gur has $20 million in debt carrying a rate of 6%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth rm and pays out all of its earnings as dividends. The rm's EBlT is $13 million, and it faces a 25% federal-plus-state tax rate. The market risk premium is 5%, and the riskfree rate is 5%. BEA is considering increasing its debt level to a capital structure with 35% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 8%. BEA has a beta of 0.0. a. What is BEA's unlevered beta? Use market value DIS (which is the same as wdwa} when unlevering. Do not round intermediate calculations. Round your answer to two decimal places. 6 b. What are BEA's new beta and cost of equityr if it has 35% debt? Do not round intermediate calculations. Round your answers to two decimal places. Beta: 6 ICost of equity: 6 % c. Iu'ul'hatis BEA's WACC with 35% debt? Do not round intermediate calculations. Round your answer to two decimal places. 9% What is the total value of the rm with 35% debt? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answer to three decimal places. $ E] 0 million