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Pettit Printing Company $($PPC$)$ has a total market value of $$100$ million, consisting of $1$ million shares selling for $$50$ per share and $$50$ million of $10\%$ perpetual bonds now selling at par. The company's EBIT is $$10\mathrm{.}70$ million, and its tax rate is $15\%.$ Pettit can change its capital structure by either increasing its debt to $65\%($based on market values$)$ or decreasing it to $35\%.$ If it decides to increase its use of leverage, it must call its old bonds and issue new ones with an $11\%$ coupon. If it decides to decrease its leverage, it will call its old bonds and replace them with new $7\%$ coupon bonds. The company will sell or repurchase stock at the new equilibrium price to complete the capital structure change.

PPC expects no growth in its EBIT, so gL is zero. Its current cost of equity, rs$,$ is $14\%.$ If it increases leverage, rs will be $16\%.$ If it decreases leverage, rs will be $13\%.$ What is the firm's WACC and total corporate value under each capital structure? Do not round intermediate calculations. Enter your monetary answers in millions. For example, an answer of $$1\mathrm{.}234$ million should be entered as $1\mathrm{.}234,$ not $1,234,000.$ Round your answers to three decimal places.

$50\%$ debt $65\%$ debt $35\%$ debt

WACC

$\%$

$\%$

$\%$

Total corporate value $

million $

million $

million

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