10 11. eBook Unlevering and then levering the required return on equity with Hamada, MM, and APV Somedebt, Inc., has a little debt (wo = 20%) with required retur 6%. It is considering restructuring to increase its percentage of debt to wo -50%. Its beta is 1.6, the risk-free rate is 5%, the market risk premium is 6%, and if it restructures, the required return on as debt will be 9%. Somedebt's tax rate is 25% 3. Using the Hamada equation, calculate Soredebt's unlevered required return and its required retum on equilty atter the recapitalization. Do not round intermediate calculations. Round your answers to two decimal places Unlevered required return on equity: 1.39 % Levered required return on equity: b. Using the MM model with corporate taxes (Equation 12010), calculate somedebt's unlevered required return and its required return on equity after the recapitalization. Hint: you will have to use algebra to sole Equation 17-16 for or use goal ook in Excel to find w. Do not round intermediate calculations, Round your answers to two decimal places Unlevered required return on equity Levered required return on equity! c. Using the APV model, calculate Somedebt's unlevered required return and its required return on equity after the recapitalization. Do not round intermediate calculations. Round your answers to two decimal places. Unlevered required return on equity: % Levered required return on equity: Hide Feedback Incorrect Check My Work (remaining)