1) Branton Corp. has no debt but can borrow at 65 percent. The firm's WACC is currently 83 percent, and the tax rate is 35 percent a What is the company's cost of equity? if the firm converts to 15 percent debt, what will its cost of equity be? Cf the firm converts to 40 percent debt, what will its cost of equity be? d.f the firm converts to 15 percent debt, what is the company's WACC 2) Meyer & Co. expects its EBIT to be Se.000 every vear fo er The firm can borrow at 5 perce Meyer currently has no debt and ts cost ef euty is 13 pamest od the tax rate is 35 percent. The company borrows $125.000 and uses the proceeds to repurchase shares a What is the cost of equity after recapitalcation? What is the WACC? 3) Jet Corporation expects an EBIT of S33,000 every year forever. The company currently has no debt, and its cost of equity is 16 percent. The corporate tax rate is 35 percent. a What is the current value of the company? b Suppose the company can borrow at 10 percent. What will the value of the firm be if the company takes on debt equal to 60 percent of its unievered value? 4 Red Rocks Corporation (RRC) curently has 138,000 shares of stock outstanding that sell for S66 per share. Assume no market imperfections or tas effects exis. a What will the share price be after RRC has a five-for-one stock solit? b. What will the share price be after RRC has a 18 percent stock dividend? c. Determine the new number of shares outstanding in (a) H Determine the new number of shares outstanding in (b)