are my ansers correct from a-f? if not what is the correct anser? Thanks!
Quantitative Problem: Currently, Meyers Manufacturing Enterprises (MME) has a capital structure consisting of 35% debt and 65% equity. MME's debt currently has a 7.2% viold to maturity. The risk free rate (tr) is 5.2%, and the market risk premium (-os) is 6,2%. Using the CAPM, MME estimates that its cost of equity is currently 10.8%. The company has a 25% tax rate. a. What is MME's current WACC? Do not round intermediate calculations. Round your answer to two decimal places. 8.91 b. What is the current beta on MME's common stock? Do not round intermediate calculations. Round your answer to four decimal places 9032 c. What would MME's bets be if the company had no debt in its capital structure (That is what is ME's unlevered beta, bu?) Do not round Intermediate calculations. Round your answer to four decimal places. .6434 HIMEs financial staff in considering changing its capital structure to 45% debt and 5* equity. If the company went ahead with the proposed change, the Vield to maturity on the company's bords would rise to 7.7%. The proposed change will have no effect on the company's tax rate, d. What would be the company's new.cost of equity if it adopted the proposed change in capital structure Do not intermediate calculations answer to two decimal places. und your 11.64 e. What would be the company's new WACC It adopted the proposed change in capital structure? Do not found intermediate calculations. Round your answer to two decimal places 9.00 f. Based on your answer to Part e would you advise. MHE to adopt the proposed change in capital structure e. What would be the company's new WACC If it adopted the proposed change in capital structure? Do not round intermediate calu two decimal places 9.00 % f. Based on your answer to Parte, would you advise MME to adopt the proposed change in capital structure? The firm should not proceed with the recitation