38) Noelle owns 12 percent of The Toy Factory. She has decided to retire and wants to sell all of her shares in this closely held, all-equity firm. The other shareholders have agreed to have the company borrow the $248,000 needed to repurchase her shares of stock. What is the total market value of the company? Ignore taxes. A) $2.414,141 B) S2,333,333 C) $2,066,667 D) $2,608,515 E) $2,489,111 39) L.A. Clothing has expected earnings before interest and taxes of $63,300, an unlevered cost of capital of 14.7 percent, and a combined tax rate of 23 percent. The company also has $11,000 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this company? A) S305,476 B)$342,579 C) S273,333D) S334,101 E) $284,108 40) Lester's has expected earnings before interest and taxes of $74,800, an unlevered cost of capital of 11.6 percent, and debt with both a book and face value of $84,000. The debt has a coupon rate of 6.35 percent and the tax rate is 24 percent. What is the value of this company? A) $510,229 B) S403,136 C) $387,094 D) $428,507 E) $347,600 41) The Book Worm is an unlevered company with an aftertax net income of $118,406. The unlevered cost of capital is 13.8 percent and the tax rate is 21 percent. What is the value of this company? A) $557,709 B) S1,320,022 C) $1,378,414 D) $952,607 E) $858,014 42) KN Stitches has debt of $26,000, a leveraged value of $78,400, a pretax cost of debt of 7.05 percent, a cost of equity of 15.3 percent, and a tax rate of 21 percent. What is the weighted average cost of capital? A) 12.02 percent B) 11.69 percent C) 11.47 percent D) 12.07 percent E) 12.12 percent 43) W.V. Trees has a debt-equity ratio of .64, a WACC of 10.8 percent, a pretax cost of debt of 7.9 percent, and a tax rate of 24 percent. What is the unlevered cost of equity capital? A) 13.45 percent B) 13.08 percent C) 13.13 percent D) 11.92 percent E) 12.97 percent