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Debt Ratio Equity Ratio rd 30% 40% 50% 60% 70% 70% 60% 50% 40% 30% 6.02% 6.75% 7.15% 7.55% 8.24% 9.40% 9.750% 10.60% 11.30% 12.80%

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Debt Ratio Equity Ratio rd 30% 40% 50% 60% 70% 70% 60% 50% 40% 30% 6.02% 6.75% 7.15% 7.55% 8.24% 9.40% 9.750% 10.60% 11.30% 12.80% WACC 9.71% 9.55% 10.02% 10.78% 11.45% Which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? Debt ratio-30%; equity ratio-7090 Debt ratio-50%; equity ratio-50% Debt ratio-60%; equity ratio-4090 Debt ratio-40%; equity ratio-60% Debt ratio-70%; equity ratio-30% Consider this case: Globo-Chem Co. currently has a capital structure consisting of 35% debt and 65% equity. However, Globo-Chem Co.'s CFO has suggested that the firm increase its debt ratio to 50%. The current risk-free rate is 3.500, the market risk premium is 7.5%, and Globo-Chem Co.'s beta is 1.15 If the firm's tax rate is 35%, what will be the beta of an all-equity firm if its operations were exactly the same

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