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AaBbceod AalbceOdte AaBbCD AaBboca Heading 1 Heading 2 Normal No Spacing Year Cash flowe 0 --$1,100 1 $400 2 $390 3 $390 4 $370 5

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AaBbceod AalbceOdte AaBbCD AaBboca Heading 1 Heading 2 Normal No Spacing Year Cash flowe 0 --$1,100 1 $400 2 $390 3 $390 4 $370 5 $360 3. (5 pointa) ABC is now considering changing the debt ratio and moving it to the new debt/assets ratio as indicated below, and replacing all preferred stocks with debt. The money raised would be used to repurchase preferred stock at the current price. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below. If this plan were carried out, (a) By how much would the WACC change, 3.6., what is NASCI - WACC (WACC in question (2) or (21) - WACC (in question 1312 New Debt/Assets 55 Interest rate now- Sew Equity/Assets 458 Now cost of equity- 25.05 Based on the Hamada equation, what would the firm's bata be fit usad no debt, what is to unlovered betal MacBook AS AaBbceod AalbceOdte AaBbCD AaBboca Heading 1 Heading 2 Normal No Spacing Year Cash flowe 0 --$1,100 1 $400 2 $390 3 $390 4 $370 5 $360 3. (5 pointa) ABC is now considering changing the debt ratio and moving it to the new debt/assets ratio as indicated below, and replacing all preferred stocks with debt. The money raised would be used to repurchase preferred stock at the current price. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below. If this plan were carried out, (a) By how much would the WACC change, 3.6., what is NASCI - WACC (WACC in question (2) or (21) - WACC (in question 1312 New Debt/Assets 55 Interest rate now- Sew Equity/Assets 458 Now cost of equity- 25.05 Based on the Hamada equation, what would the firm's bata be fit usad no debt, what is to unlovered betal MacBook AS

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