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1. Use the following information to answer the questions. 1) In Case I, when the debt-to-firm value (D/V) increases from mathbf0 to 50, i) Figure

image text in transcribed 1. Use the following information to answer the questions. 1) In Case I, when the debt-to-firm value (D/V) increases from \mathbf0 to \50, i) Figure out the new cost of equity. (30points). ii) Figure out the old WACC with zero debt. Figure out the new WACC with debt of 50\\%. (30points). 2) In Case II, when the debt increases from \\( \\$ 0 \\) to \\( \\$ 60 \\mathrm{mil} \\), i) Figure out the levered firm's value. (30points) ii) Figure out the optimal capital structure. In other words, does the capital structure affect the WACC? (30points)

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