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Beckman Engineering and Associates ( BEA ) is considering a change in its capital structure. BEA currently has $ 2 0 million in debt carrying
Beckman Engineering and Associates BEA is considering a change in its capital structure. BEA currently has $ million in debt carrying a rate of and its stock price is $ per share with million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $ million, and it faces a federalplusstate tax rate. The market risk premium is and the riskfree rate is BEA is considering increasing its debt level to a capital structure with debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be BEA has a beta of What is BEA's unlevered beta? Use market value DS which is the same as wdws when unlevering. Do not round intermediate calculations. Round your answer to two decimal places. What are BEA's new beta and cost of equity if it has debt? Do not round intermediate calculations. Round your answers to two decimal places. What are BEAs WACC and total value of the firm with debt? Do not round intermediate calculations. Round your answer to two decimal places. What is the total value of the firm with debt? Enter your answers in millions. For example, an answer of $ should be entered as Do not round intermediate calculations. Round your answer to three decimal places.
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