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answer all parts please Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identity its optimal capital structure. Transworld Consortium

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Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identity its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis. WACC Debt Ratio 30% Equity Ratio 70% 7.00% 8.61% 40% 10.50% 10.80% 7.20% 8.21% 50% 60% 50% 40% 7.70% 11.40% 8.01% 60% 8.90% 12.20% 8.08% 70% 3096 10.30% 13.50% 8.38% Which capital structure shown in the preceding table is Transworld Consortium Corp.'s optimal capital structure? O Debt ratio = 30%; equity ratio - 70% Debt ratio = 70%, equity ratio = 30% Debt ratio 40%; equity ratio = 60% Debt ratio -50%; equity ratio 50% Debt ratio - 60%, equity ratio 40% Globo-Chem Co. is an all-equity firm, and it has a beta of 1. It is considering changing its capital structure to 60% equity and 40% debt. The firm's cost of debt will be 6%, and it will face a tax rate of 25%. What will Globo-Chem Co.'s beta be if it decides to make this change in its capital structure? Now consider the case of another company: US Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before-tax cost of debt is 6%, and its tax rate Is 25%. It currently has a levered beta of 1.15. The risk-free rate is 3%, and the risk premium on the market is 7%. US Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt to increase to 8%. First, solve for US Robotics Inc.'s unlevered beta, Use US Robotics Inc.'s unlevered beta to solve for the firm's levered beta with the new capital structure. Use US Robotics Inc.'s levered beta under the new capital structure, to solve for its cost of equity under the new capital structure. What will the firm's weighted average cost of capital (WACC) be if it makes this change in its capital structure? US Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before-tax cost of debt is 6%, and its tax rate is 25%. It currently has a levered beta of 1.15. The risk-free rate is 3%, and the risk premium on the market is 7%. US Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt to increase to 8%. First, solve for US Robotics Inc.'s unlevered beta. Use US Robotics Inc.'s unlevered beta to solve for the firm's levered beta with the new capital structure, Use US Robotics Inc.'s levered beta under the new capital structure, to solve for its cost of equity under the new capital structure. What will the firm's weighted average cost of capital (WACC) be if it makes this change in its capital structure? O 10.00% 7.50% 8.50% 9.50% Grade It Now SaveContou

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