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Answer all questions with formula ital budgeting analysis. The firm's beta is 1.5. The rate on 30- isusderand the returnon the S&P 500 index is

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ital budgeting analysis. The firm's beta is 1.5. The rate on 30- isusderand the returnon the S&P 500 index is 12% what is the cost of Pony's 12 Poay Corporation retained carnings? 13.3% a. b. 15.5% d. 19.9% East Man Kodiac plans to maintain its optimal capital structure of30% debt, 20% preferred 33. and 50% common stock shareholders require l 196; and common stockholders taxrate of40%, what after-tax rate of return must East Man Kodiaceam on it the firm is to remain unchanged? stock, ; preferred require 16%. Assuming that the firm has a marginal s investments if the value of . Bondholders require a before tax return on East Man's bonds of 10% a.10% b.12% c.14% d.16% 34. What is the capital Structure of the company below? Assets Current Assets 6.000.000 Liabilities & Shareholders Equity Short Term Liabilities 12.000.000 Long Term Liabilities 3.000.000 4.000.000 Fixed Assets Shareholder's Equity Common Equity Retained Earnings Total Liabilities &Shareholders Equity Total Assets 2.000.000 3.000.000 6.000.000 18.000.000 a. b. c. d. 39% debt. I 1% preferred, 50% equity 58% debt, l 7% preferred, 25% equity 27% debt. I 3% preferred, 60% equity 22% debt, l 1% preferred, 50% equity

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