BNP Inc. is an all-equity firm with 12,000 shares outstanding. The

current stock price is $40 per share. The company is planning to issue a perpetual debt to buy back its stocks. It can either borrow $120,000 at 4% or $180,000 at 6%. The current EBIT is $120,000 and the tax rate is 30%. [Keep at least 2 decimal places for dollar amounts and 4 decimal places for rates]  

-Calculate the current cost of capital.
-Calculate the debt equity ratios after the two recapitalization plans.
-Calculate the cost of equity after the two recapitalization plans.
-Calculate the stock prices after the two recapitalization plans.
-Calculate the breakeven EBIT between the two proposed recapitalization plans.