Which of the following firms will benefit from an increase in debt in their capital structure? The firms’ tax rate is 35%. Be sure to show your calculations.Firm A: Beta=1.3, Cost of Equity=11.5, Return on Equity=20%, Before tax cost of debt=7%. Firm B: Beta=1.1, Cost of Equity=10.5, Return on Equity=15%, Before Tax cost of debt=13%. Firm C: Beta=2.1, cost of equity=15.5, Return on Equity=13%, before tax cost of debt=10%. Firm D: Beta=.8, Cost of equity=9.0, Return on equity=7%, Before tax cost of debt=8%. Firm E: Beta=.5, Cost of Equity=7.5, Return on Equity=6%, Before Tax cost of debt=10%.Hint: Firm A’s ROE of 20 % exceeds its after-tax cost of debt of 4.55%. *’will benefit’ from an increase in debt, *Check figure: Firm A: After-tax cost of debt is 7%(1-35%)=4.55%; ROE is 20%>4.55% so it benefits. *you have extra info on Beta and cost of equity, use to discuss. 12 point, doubled spaced, 2 pages.