Corporate Finance Chapter 16 1. RMK is currently an all equity firm that ha 130,000 shares of stock outstanding with a market price of $36 a share. The current cost of equity is 14 percent and the tax rate is 35 percent adding S1.5 million of debt with a coupon rate of 7 percent to its capital structure. T par value. What is the levered value of thelequity firm is considering he debt will be sold at 2. The River Corporation has expected earnings before interest and taxes of $3,800. Its unlevered cost of a 15 percent coupon and pays interest annually. What is the firm's weighted capital is 14.5 percent and its tax rate is 35 percent. Berklevs has debt with both a book and a face value average cost of capital? WACC an unlevered cost of capital of 14 percent, a cost of debt of 9 percent, and a tax rate of 34 target debt-equity ratio if the targeted cost of equity is 16.5 percent? 3.SSR has 4. MMM has a debt-equity ratio of .60. The pre-tax cost o assets is 14 percent. What is the cost of equity if you ignore taxes? f debt is 9.1 percent and the required return on E-et incom, z roc,-03H:@D