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CAPM, Forever estimates that its cost of equity is currently 12%. The company has a 25% tax rate. a. What is Forever's current WACC? Round
CAPM, Forever estimates that its cost of equity is currently 12%. The company has a 25% tax rate. a. What is Forever's current WACC? Round your answer to two decimal places. 3% b. What is the current beta on Forever's common stock? Round your answer to two decimal places. 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 round intermediate calculations. Round your answer to two decimal places. % e. What would be the company's new WACC if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places. % f. Based on your answer to part e, would you advise Forever to adopt the proposed change in capital structure
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