Please see the attached document. The course is introduction to corporate finance. thank you!

ABC Co. and XYZ Co. are identical rms in all respects except for their capital structure. ABC is all equity nanced with $400,000 in stock. XYZ uses both stock and perpetual debt; its stock is worth $200,000 and the interest rate on its debt is 5.8 percent. Both rms expect EBIT to be $45,000. ignore taxes. a. Rico owns $20,000 worth of XYZ's stock. What rate of return is he expecting? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Rate of return % b. Suppose Rico invests in ABC Co. and uses homemade leverage. Calculate his total cash ow and rate of return. (Do not round intermediate calculations. Enter your rate of return answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total cash ow $ Rate of return % c. What is the cost of equity for ABC and XYZ? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity ABC % XYZ % d. What is the WACC for ABC and XYZ? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) WACC ABC % XYZ %