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Complete the table under the following scenarios: Corporation Tax (c) is equal to 0% Corporation Tax (TC) is equal to 30% You are given the

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Complete the table under the following scenarios: Corporation Tax (c) is equal to 0% Corporation Tax (TC) is equal to 30% You are given the following information: Risk-free rate (R) is 3% Expected return on the market (Rm) is 9% Assume Cost of debt is equal to the risk-free rato. Beta of Unlevered Equity (Ba) is 120 it was calculated by comparing the returns of the company with no debt against the returns of the market index.) Corporate Tax of 0% Value of Debt (D) Beta of equity (Bo) Cost of Equity (Re) 0X1020 Cost of debt (Rd) 0.03 WACC , 102 200 400 600 800 Value of Equity (E) 1000 800 600 400 200 10.03 0.15 0.102 || 0.03 0.39 0.102 Corporate Tax of 30% Value of Debt (D) Value of Equity Beta of equity Bel Cost of debt (Rd) 0.03 IE) Cost of Equity (Ro) 0.102 WACC 0.102 200 400 1000 800 600 400 200 0.03 10.0898 1356 10.3038 800 0.03 0.0775

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