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Excel Online structured Activity amada below. Open the spreadsheet and perform the reared and to the stone spread What we SSC and cost of changed

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Excel Online structured Activity amada below. Open the spreadsheet and perform the reared and to the stone spread What we SSC and cost of changed ructure to Sound Sound your . De Hamada equation Original % debt in capital structure, Wd Original % common equity in capital structure, wc Risk-free rate, TRE Market risk premium, RPM Tax rate, T Firm's cost of equity, is 20.00% 80.00% 3.00% 5.00% 40.00% 16.00% Formulas 10 Calculation of firm's current beta: Firm's current beta, bu 11 #N/A Calculation of firm's unlevered beta: Firm's unlevered beta, bu 14 #N/A New % of debt in capital structure, Wa New New % of common equity in capital structure, Wc New 50.00% 50.00% 18 19 20 Calculation of firm's new beta: Firm's new beta, bL New #N/A 22 Calculation of firm's new cost of equity: Firm's new cost of equity, Is New #N/A

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