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Can anybody help me. I do not know how to calculate wacc and other things. Question 2: Capital Structure (35 points) You have been asked

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Can anybody help me. I do not know how to calculate wacc and other things.

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Question 2: Capital Structure (35 points) You have been asked by JJ Corporation, a California- based firm that manufacturers and services digital satellite TV systems, to evaluate its capital structure. They currently have 70 million shares outstanding trading at $10 per share. The cornpany's beta is 1.2, and the current risk-free rate is 2%, the market risk premium is 5%. The tax rate is 40%. b. d. What is the firm's current cost of equity and WACC? JJ Corporation is proposing to borrow $250 million and use the debt's proceeds to buy back $250 rnillion dollars of stock. The YTM on the debt is 4% What will the firm's cost Of equity be after it borrows? What will be the price per share? What will the firm's weighted average cost Of capital be after the firm borrows? What will the value of the firm be after it borrows? (assuming zero growth, and that the debt is perpetual)

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