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3. The relationship between a im's capital structure and other company attributes Wich of the following are ways that afm.coreloce cash flows in order to

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3. The relationship between a im's capital structure and other company attributes Wich of the following are ways that afm.coreloce cash flows in order to prevent managers from wastefully spending new towe? Check that arily relio cens cash flows back to shareholders through stock repurchases a running wash flows back to shareholders through the dividende Mining the amount of debt in the capital structure so that the bom can borrow money at reasonable rate when good investment opportunities Dincreasing the amount of debt in the firm's target capital structure in the hope that higher debut service requirements will force manager to be more displined Green Goose Automation Company currently has no debe in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm's unlevered beta s 125, and its cost of equity is 11.5%Because the firm has no debe in its capital structure, its weighted average cost of capital (WACC) also equals 11.75%. The risk free rate of Interest (tor) is 3%, and the market risk premium (RPM) 57% Green Goose marginal tax rate is 250 Green Goose is examining how different levels of debt will affect its costs of debt und equity, as well as its wace. The firm has collected the financial information that follows to analyze its weighted average cost of capital (WACC). Complete the following table 15 /Cap E/Cap Ratio Ratio Bond Rating Before Tax Cost of Debt () Levered Beta (1) 1.25 Cost of quity 1.) D/E Ratio 0.00 WACC 0:0 1.0 6,2 0.25 0.0 0.6 11.75% 11.0254 04 1:13 16.125 6.67 3.59 0.6 0.0 1.50 00 1.875 2.650 5.000 13.542 0. 100% 13.99 02 38.000

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