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I need the answers ASAP Hartman Motors has $32 million in assets, which were financed with $8 million of debt and $24 million in equity.
I need the answers ASAP
Hartman Motors has $32 million in assets, which were financed with $8 million of debt and $24 million in equity. Hartman's beta is currently 0.8, and its tax rate is 35%. Use the Hamada equation to find Hartman's unlevered beta, bu. Do not round intermediate calculations. Round your answer to two decimal places. Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 30% debt and 70% equity; however, the CEO believes that the firm should use more debt. The risk-free rate, rrf, is 3%; the market risk premium, RPM, is 7%; and the firm's tax rate is 40%. Currently, SSC's cost of equity is 14%, which is determined by the CAPM. What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity? Do not round intermediate calculations. Round your answer to two decimal places. %Step by Step Solution
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