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Can someone please help me with this finance problems???? Ive attached a photo and would really appreciate it Corporations allowed to deduct interest payments as

Can someone please help me with this finance problems???? Ive attached a photo and would really appreciate it

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Corporations allowed to deduct interest payments as an expense. Corporations allowed to deduct dividend payments to stockholders as an expense. The differential tax treatment of interest payments and dividend payments enoourages firms to use in their capital structure. Debt financing is expensive than common or preferred stock financing. Green Goose Automation Company currently has no debt in its capital structure. but it is considering using some debt and reducing its outstanding equity. The firm's unlevered beta is 1.1, and its oost of equity is 12.80%. Because the firm has no debt in its capital structure. its weighted average oost of capital {WACC} also equals 12.80%. The risk-free rate of interest {rap} is 4%, and the market risk premium (RF) is 0%. Green Goose's marginal tax rate is 40%. Green Goose is examining how different levels of debt will affect its oosts of debt and equity, as well as its WACC. The firm has oollected the financial information that follows to analyze its weighted average oost of capital {WACC}. Complete the following table. Before-Tax Din EIA Bond Cost of Debt Levered Cost of Ratio Ratio DIE Ratio Rating (rd) Beta (B) Equity (rs) WAC: 0.0 1.0 0.00 1.1 12.80% 12.90% 0.2 0.0 0.25 A 7.2% v 14.15% 12.19% 0.4 0.6 0.57 BBB 7.7% 1.54 15.32% |:| 0.5 0.4 1.50 BB 0.9% 2.09 |:| 11.49% 0.13 0.2 v c 11.9% 3.74 33.92% |:|

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