1 If Symonds Electronics Inc. were to raise all of the required capital by issuing debt, what would the impact be on the firm's shareholders? 2 What does "homemade leverage" mean? Using the data in the case explain how a shareholder might be able to use homemade leverage to create the same payoffs as achieved by the firm. 3 What is the current weighted average cost of capital of the firm? What effect would a change in the debt to equity ratio have on the weighted average cost of capital and the cost of equity capital of the firm? 4 The firm 's beta was estimated atl.1. Treasury bills were yielding 4% and the expected rate of return on the market index was estimated to be 12%. Using various combinations of debt and equity, under the assumption that the costs of each Component stay constant, show the effect of increasing leverage on the weighted average cost of capital of the finn. Is there a particular capital structure that maximizes the value of the firm? Explain