1. Bien Company has the following financial statements for 2020: Income statement balance sheet Sales $ 36,000 Assets $ 28,300 Debt 7000 Costs 30.000 Equity Net income $ 6.000 Total $ $28.300 28.300 Total Bien paid out 30% of income as dividend in 2020. It's ROE was 28%. >> Calculate the Additions to Earnings for 2020. a) b) Calculate its sustainable growth rate 2. Bien has a stock market value of $1 billion. It has long term debt of $500 million outstanding at the borrowing cost of 7%. Its stock has a beta of 1.2 and the market return is 10% with a risk free rate of 4%. Its tax rate is 35%. What's company cost of equity? b) What's company after tax cost of debt? What's the company's WACC? 3. Bien Company currently has no debt, but it can borrow at 5% rate. The firm has a WACC of 9.5% currently and its tax rate is 35%. a) what's its current cost of equity? If the firm converts to 50% debt level, what the firm's equity cost will be? What's the firm's WACC at the 50% debt level? 4. A firm has EBIT of $30 million. It has debt of $100 million and the cost of debt is 7%. Its unlevered cost of capital is 10% and tax rate at 35%. a) What's its unlevered firm value? $ 21.300