hand calculations

Cost of Debt (Rd) PV of Financial Distress Costs Value of Debt $0 $4,000,000 $6,000,000 Belta .75 ? 1.7 5% 7% $400,000 ? a) b) c) d) What is the value and WACC of this all-equity firm? (3 marks) What would be the value of the company if it issues $4 million in debt? (2 marks) What would be the company's Beta if it issues $4 million in debt? (6 marks) What would be the value of the company if it issues $6 million in debt? (5 marks) What would be the PV of financial distress costs if the firm issues $6 million in debt? (2 Cost of Debt (Rd) PV of Financial Distress Costs Value of Debt $0 $4,000,000 $6,000,000 Belta .75 ? 1.7 5% 7% $400,000 ? a) b) c) d) What is the value and WACC of this all-equity firm? (3 marks) What would be the value of the company if it issues $4 million in debt? (2 marks) What would be the company's Beta if it issues $4 million in debt? (6 marks) What would be the value of the company if it issues $6 million in debt? (5 marks) What would be the PV of financial distress costs if the firm issues $6 million in debt? (2