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EMERGENCY! Could somebody help me to understand how to solve this problem, Please? The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in

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EMERGENCY! Could somebody help me to understand how to solve this problem, Please?

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The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in E thousands) is as follows: Cash and marketable securities 2, 300 Short-term debt C 76,400 Accounts receivable 120, 800 Accounts payable 62,800 Inventory 125, 800 Current liabilities C 139, 200 Current assets C 248,900 Property, plant, and equipment 212, 800 Long-term debt 209,400 Deferred taxes 45, 800 Other assets 88 , 200 Shareholders' equity 247, 100 Total C 595, 700 Total C 595, 700The debt has an interest rate of 4.00% {short term} and 6.00% {long term]. The expected rate of return on the company's shares is 13.00%. There are 154 million shares outstanding, and the shares are trading at 54. The tax rate is 25%. Assume the company issues 50 million in new equity and uses the proceeds to retire long-term debt. Also assume the company's borrowing rates are unchanged and the short-tem'l debt is permanent. Use the threestep procedure. 3. Calculate the cost of equity alter the capital restructuring. [Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) _m h. Calculate the WACC after the capital restructuring. {Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Wigwam-mm m

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