4. Company A is currently an all-equity firm with an expected return of 14.01%. It is considering borrowing money to buy back some of its existing shares, thus increasing its leverage.

Suppose the company borrows to the point that its debt-equity ratio is 1.49. With this amount of debt, the debt cost of capital is 8.57%. What will be the expected return of equity after this transaction?

6. Suppose Microsoft has no debt and a WACC of 13.31%. The average debt-to-value ratiofor the software industry is 1.83%. What would be its cost of equity if it took on the aver-ageamount of debt for its industry at a cost of debt of 6.04%?

10. Company A had EBIT of $320850222 in 2019. In addition, the company had interest expenses of $128877021 and a corporate tax rate of 39.15%.

What was the company's total payments to shareholders and debtholders?