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Following five problems Current Wd 3 0 % Tax rate 3 0 % Structure Ws 7 0 % WACC 1 2 % Other Rf 5

Following five problems
Current Wd 30% Tax rate 30%
Structure Ws 70%
WACC 12%
Other Rf 5% Tax rate 30%
Factors Market Risk Premium 8%
What is the current beta?
Group of answer choices
1.000
0.813
0.700
1.600
What is the unlevered beta?
Group of answer choices
1.231
0.538
0.625
0.769
As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio (D/E) to 1.5. What is the levered beta of the target capital structure?
Group of answer choices
2.523
1.104
1.281
1.577
As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio (D/E) to 1.5. What is the cost of equity of the target capital structure?
Group of answer choices
25.18%
13.83%
15.25%
17.62%
As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio (D/E) to 1.5. What is the estimated cost of capital of the target capital structure with the average default spread is 2.7%?
Group of answer choices
13.31%
8.77%
9.33%
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