please solve ALL parts a b c d e f g h i and take clear photo of solution providing all necessary steps and explanatoon and calculations

5. (25 points) XYZ Inc. has a debt to equity ratio of 0.5,$150000 of debt with an interest rate of 2%,10000 shares outstanding, a 10% expected return on assets, and a 30% tax rate. Assuming a constant amount of debt: 3 (a) Compute the value of the firm and its share price. (b) Compute the expected return of equity. (c) Compute the weighted average cost of capital of the company. (d) What are the expected amounts distributed annually to share- and debt-holders? (e) What are the expected earnings before taxes? What are the expected earnings before interests and taxes? Assume now that the company decides to increase its debt by $25 '000 to repurchase stocks. Assume that the interest rate on debt remains unchanged: (f) Compute the total value of the firm when the repurchase plan is announced. What is the value of equity and debt? (g) What is the share price upon this announcement? How many shares can the company buy-back with the proceeds of the debt issuance? (h) Compute the net earnings of the company after the share-repurchase. (i) Compute the debt to equity ratio and the weighted average cost of capital after the share-repurchase. Compare the ED and WACC after and before the share repurchase. Did the company make the right decision to modify its capital structure? 5. (25 points) XYZ Inc. has a debt to equity ratio of 0.5,$150000 of debt with an interest rate of 2%,10000 shares outstanding, a 10% expected return on assets, and a 30% tax rate. Assuming a constant amount of debt: 3 (a) Compute the value of the firm and its share price. (b) Compute the expected return of equity. (c) Compute the weighted average cost of capital of the company. (d) What are the expected amounts distributed annually to share- and debt-holders? (e) What are the expected earnings before taxes? What are the expected earnings before interests and taxes? Assume now that the company decides to increase its debt by $25 '000 to repurchase stocks. Assume that the interest rate on debt remains unchanged: (f) Compute the total value of the firm when the repurchase plan is announced. What is the value of equity and debt? (g) What is the share price upon this announcement? How many shares can the company buy-back with the proceeds of the debt issuance? (h) Compute the net earnings of the company after the share-repurchase. (i) Compute the debt to equity ratio and the weighted average cost of capital after the share-repurchase. Compare the ED and WACC after and before the share repurchase. Did the company make the right decision to modify its capital structure