165 Pecking order hypotheses.

Rachel can raise capital from the sources in the screen shot:

What isRachel's weighted average cost of capital if she needs to raise

a.$15,000?

b.$20,000?

c.$30,000?

166 Modigliani andMiller's world of no taxes.

RoxyBroadcasting, Inc. is currently alow-levered firm with adebt-to-equity ratio of4/9. The company wants to increase its leverage to9/4for debt to equity. If the current return onassets is11% and the cost of debt is9%, what are the current and the new