Complete the table under the following scenarios:

Corporation Tax (Tc) is equal to 0%

Corporation Tax (Tc) is equal to 30%

You are given the following information:

Risk-free rate (Rf) is 3%

Expected return on the market (Rm) is 9%

Assume Cost of debt is equal to the risk-free rate.

Beta of Unlevered Equity (a) is 1.20 (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)	Value of Equity (E)	Beta of equity (e)	Cost of debt (Rd)	Cost of Equity (Re)	WACC
0	1000	1.2	0.03	0.102	0.102
200	800
400	600	2	0.03	0.15	0.102
600	400
800	200	6	0.03	0.39	0.102

Corporate Tax of 30%

Value of Debt (D)	Value of Equity (E)	Beta of equity (e)	Cost of debt (Rd)	Cost of Equity (Re)	WACC
0	1000	1.2	0.03	0.102	0.102
200	800
400	600	1.76	0.03	0.1356	0.0898
600	400
800	200	4.56	0.03	0.3036	0.0775