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(d) Still using the data of previous parts, what is the effect of the capital structure change on Perpetual's equity beta and expected return on
(d) Still using the data of previous parts, what is the effect of the capital structure change on Perpetual's equity beta and expected return on equity? (6 points) (e) Given all the assumptions above, is it reasonable to also assume that Perpetual's expected cost of debt will remain constant over time? Why or why not? No computations necessary, a verbal answer will suffice. [3 points) (d) Still using the data of previous parts, what is the effect of the capital structure change on Perpetual's equity beta and expected return on equity? (6 points) (e) Given all the assumptions above, is it reasonable to also assume that Perpetual's expected cost of debt will remain constant over time? Why or why not? No computations necessary, a verbal answer will suffice. [3 points)
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