electorale company listed on the AIM Alternative Investment Market) at the section or destinace is likely to have on the company The current is currently owned only by equity Capital Structure 5.000 300 1.100 1.000 The compare's current share price is 420 pence, and up to $ 4 million of fixed rate five year debt could be raised at an interest rate of 10% per annum. The corporate tax rate is 33% tra's current eamings before interest and tax are $ 2.5 million. These earnings are not expected to change significantly for the foreseeable future The company is considering raising either: S2 million in debt finance i S4 million in debt finance In either case the debt finance will be used to repurchase ordinary shares. Required a. using Miller and Modigliani's model in a world of corporate tax, estimate the impact on Netra's cost of capital of raising IS 2 million and ii. $ 4 million in debt finance. electorale company listed on the AIM Alternative Investment Market) at the section or destinace is likely to have on the company The current is currently owned only by equity Capital Structure 5.000 300 1.100 1.000 The compare's current share price is 420 pence, and up to $ 4 million of fixed rate five year debt could be raised at an interest rate of 10% per annum. The corporate tax rate is 33% tra's current eamings before interest and tax are $ 2.5 million. These earnings are not expected to change significantly for the foreseeable future The company is considering raising either: S2 million in debt finance i S4 million in debt finance In either case the debt finance will be used to repurchase ordinary shares. Required a. using Miller and Modigliani's model in a world of corporate tax, estimate the impact on Netra's cost of capital of raising IS 2 million and ii. $ 4 million in debt finance