a market risk of 25%. Calculate Beta. (1 point) 4. River Cruises is all-equity-financed. Suppose it now issues interest rate of 10% and uses the proceeds to repurchase the firm pays no taxes and that debt finance has no showed below by selecting values per each scenario earnings per share and share return vary with operating income it now issues $ 450,000 of debt at an opurchase 45,000 shares. Assume that debt finance has no impact on firm value. Rework per each scenario and account to show how perating income after the financing. Current Data Number of shares 100,000 Price per share $10 Market value of shares $1 million Slump $100,000 Outcomes Normal $150,000 Boom $200,000 State of the Economy Profits before interest Interest Equity earnings Earnings per share Return on shares (5 points) 5. Dunet is financed 40% by debt yielding 8%. Investors require a return of 18% on Donet's equity. a. What is the company's weighted average cost of capital if the corporate tax rate is 35%? b. What would be the company's cost of capital if it were exempted from corporate tax