BNA Corporation Data $7,460 $3,652 10.5% Total assets Interest-bearing debt Average pretax borrowing cost Common equity: Book value Market value Income tax rate Market equity beta $2,950 $13,685 35% 1.13 Question 5: Compute the revised equity beta for BNA based on the new capital structure assuming that BNA is a potential leveraged buyout candidate; also assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. A. 4.35 B. 4.34 C. 2.84 D. 3.91 Question 6: Compute the weighted average cost of capital for BNA based on the new capital structure assume that BNA is a potential leveraged buyout candidate; also assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. A. 8.85% B. 12.56% C. 13.01% D. 9.9496