Company has WACC of 10%. The cost of equity capital is 16% and pretax cost of debt is 7%. Company tax rate is 35%.

a. Calculate the equity to firm value ratio (E/V). b. What is the debt to equity ratio (D/E)?

PLEASE SHOW ALL THE SOLUTION STEPS, CALCULATIONS AND FORMULAS.

6. Company Y has WACC of 10K. The cost of equity capital is 16w and pretas cost of deter is Th. Company tax rate is 35%. a. Calculate the equity to firm value ratto (E/M). b. What is the debt to equity ratio (D/E)