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3. At the new capital structure (20%/80%), their new r0=6.5%. What will be their cost of capital (WACC)? WACC=W0r0(1T)+Wsrs [Enter answer in decimal points, e.g.

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3. At the new capital structure (20%/80%), their new r0=6.5%. What will be their cost of capital (WACC)? WACC=W0r0(1T)+Wsrs [Enter answer in decimal points, e.g. 15.75% as 0.1575 ] 4. At the new capital structure (20%/80%), what is their Value of Operations (Vop)? VOP=FCF1(WACCg) - wishes to change its present capital structure (D/E ratio) from (10%/90%) to (20%/80%) - L=1.30Rf=3.0%,rM=12.00%,# of shares outstanding (n)=150 - FCF0=$300gL=2.0% Current r0=6.00%, Tax rate =30.0%

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