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FINS1613 Some Capital Structure Practice Problems Question 1 Caer en Picado has a debt-equity ratio of 2.6. Its WACC is 13.0% aid its cost of debt is 10.0%. The corporate tax rate is 24.0%, what is the firm's unlevered cost and to create your ow DIE, 2.1com. of equity capital? a. 14.87% b. 17.87% C. 18.87% d. 15.73% e. 16.72% ONLINE PRACTICE PPORTUNITIES lo 26 3 6 Finance Plan 16.1 he E 0.270 re 0.2704= ru-2.6 (rv-0.1 )ro-2.6ruto26 Question 2 Ia Desgracia is currently an all equity firm that has 400,000 shares of stock out- standing with a market price of $30 a share. The cu and thetax rate is 32%. The firm is considering adding $30 million ofdebt with a coup What is the levered value of the firm's equity? rrent cost of equity is 11.0% on rate of 80% to its capital structure. The debt will be sold at par value. a. $9.960 million b. $11.040 million c. $12.960 million d $8.050 million an 16.2 ive Levera FINS1613 Some Capital Structure Practice Problems Question 1 Caer en Picado has a debt-equity ratio of 2.6. Its WACC is 13.0% aid its cost of debt is 10.0%. The corporate tax rate is 24.0%, what is the firm's unlevered cost and to create your ow DIE, 2.1com. of equity capital? a. 14.87% b. 17.87% C. 18.87% d. 15.73% e. 16.72% ONLINE PRACTICE PPORTUNITIES lo 26 3 6 Finance Plan 16.1 he E 0.270 re 0.2704= ru-2.6 (rv-0.1 )ro-2.6ruto26 Question 2 Ia Desgracia is currently an all equity firm that has 400,000 shares of stock out- standing with a market price of $30 a share. The cu and thetax rate is 32%. The firm is considering adding $30 million ofdebt with a coup What is the levered value of the firm's equity? rrent cost of equity is 11.0% on rate of 80% to its capital structure. The debt will be sold at par value. a. $9.960 million b. $11.040 million c. $12.960 million d $8.050 million an 16.2 ive Levera