According to the Miller (1977) model which reflected personal taxes, assume that (1) the personal lax rate j on stocks (both capital gains and dividends) is effectively zero, the corporate tax rate is 40%, and municipal s are currently 7%. What must yield on corporate bonds be for equilibrium to prevail? A firm has a debt-to-equity ratio of 1.00. Its cost of equity is 12%, and its cost of debt is 6%. If there are or other imperfections, what would be its cost of equity if the debt-to-equity ratio were 0? Using the information from the question immediately above, what is the market value of equity if the market value of debt is currently $1,000,000 and the cost of equity (levered) is 10.5%? Using the information from the two questions immediately above, what is the firm's WACC? A firm has zero debt in its capital structure. Its overall cost of capital is 8%. The firm is considering; new capital structure with 50% debt (D/E = 50%). The interest rate on the debt would be 5%. Assuming that the corporate tax rate is 40%, its cost of equity capital with the new capital structure would be