Optimal Capital Structure with Hamada deckman Engineering and Associates (BEA) is consdering a change in its capital structure: BEA currenty has $20 million in debt carrying a rate of 7% and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's Earr is stz. 796 million, and it faces a 30% federal-plus-state tax rate. The market risk premium is 5%, and the risk-free rate is 6%. PEA is considering increasing as debt ievel to a capital structure with 30% debt, bosed on market values, and repurchasing shares wat the extra money that it borrows. BEA will have to retire the old debe in order to iswe new debt, and the rate on the new debt will be 10\%. BEA has a beta of 1.2. a. What is BLA' Unlevered beta? Use maket value D/S (which is the same as wadw) when unievering. Do not round imtermedite calculations. Hoound vour antwer to two decimal places. b. What are BEA's new beta and cost of equity if it has 30% debs? Do not round intermed ate cakulations, Round yeur answers to tho decimal paces. Beta: Cost of equity: c. What are BEAS WACC and total value of the firm weh 30% debt? Do not round intermediate calculations. Round your answer to two decimal places. a What is the total volue of the firm with 30% debt? Enter your answers in milions. For example, an answer 0 510,550,000 anould be entered as 10.55. Do not round intermedate calarlations: found your answer to three decimal places. s million