. Ice-Lane and Ice-Land are two publicly traded fresh-beverage producing companies. Since the underlying risk exposure of both companies is identical, their asset beta will also be equal.

However, both companies differ in their capital structure.

Ice-Lane has a D/E of 0.5, beta of levered equity is 1.5, while the market risk-premiem is 6.0% and the risk-free rate is 4.0%. Assume all debt is risk free and issued at the risk- free rate. Further assume M&M world without taxes.

What is Ice-Lane's return on levered equity? ------------(please write to one-decimal place, without % sign)

What is Ice-Lane' WACC? ------------(please write to one-decimal place, without % sign)

Suppose that Ice-Land has a target D/E of 0.8.

What is Ice-Land's return on levered equity?------------- (please write to one-decimal place, without % sign)

What is Ice-Land's WACC? ---------------(please write to one-decimal place, without % sign)