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Flood Motors is an all-equity firm (Debt ratio = 0%) with 200,000 shares outstanding, with current WACC of 10%. The risk-free rate in the economy

Flood Motors is an all-equity firm (Debt ratio = 0%) with 200,000 shares outstanding, with current WACC of 10%.
The risk-free rate in the economy is 6 %, the market risk premium is 4 % and the companys tax rate is 40 percent.
The company is considering issuing $2 million worth of bonds (at par) and using the proceeds for a stock repurchase. This will create a debt ratio of 25% in the company.
If issued, the bonds would have an estimated yield to maturity (rd before tax) of 8.0%, also this is expected to raise the EPS from a current of $2.34 to $3.45 and companys beta would rise to 1.2 if it proceeds with the recapitalization.
Required: Use the given above to answer questions 1 through 8
1- Before the recapitalization, what is the companys cost of common equity (rs)? *
0%
14%
6%
10%
None of the above
2- Before the recapitalization, what is the companys stock beta (Bu)? *
2.00
1.20
1.75
2.34
None of the above
3- After the recapitalization, what is the companys cost of common equity (rs)? *
10.8%
11.2%
10%
8%
None of the above
4- After the recapitalization, what is the companys WACC? *
11.2%
9.3%
8.0%
10%
None of the above
5- After the recapitalization, what is the companys stock price (P0)? *
$52.64
$45.49
$28.54
$23.46
None of the above
6- If the company used a debt for 50% with 9% YTM (before tax cost of debt), then the WACC compared to WACC with no debt will: *
Increase by 12%
Increase by 50%
Decrease by 0.5%
Decrease by 1.1%
None of the above
7- If the company has a target WACC of 9%, knowing that it can issue bonds at rate of 8% and maintain Beta leverage 1.15, how much approximately it should use debt as portion of its total capital to meet its target? *
15.0%
27.5%
34.0%
55.5%
None of the above
8- Assume the company needs to maintain a price per share $40 with EPS 12% from the price and a cost of capital no more than 8%, knowing that the company can borrow at any level of debt at an interest rate before tax 9.5%. Then how much should be the approximate level of equity for the company to reach its target. *
47.62%
52.38%
65.92%
70.28%
e) None of the above
i need all the questions just the answers . Thank you

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