Question: Show work and explain please for lifesaver... This is a world with NO TAXES (perfect capital markets).The firm is a no growth firm and pays

Show work and explain please for lifesaver...

This is a world with NO TAXES (perfect capital markets).The firm is a no growth firm and pays out all of its earnings as dividends.It is originally all equity financed (unlevered).The firm decides to issue $500,000 in debt to repurchase stock.The cost of debt is 4%.Fill in ALL the missing values in the table.

	Unlevered	Levered
EBIT	200,000	200,000
INTEREST	0	20,000
Earnings (Net Income)	200,000	180,000
#Shares	20,000
r_A	8%	8%
r_E	8%
EPS	$10.00
Price

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