In this question, how would we find Re (part d) for the various betas since we are not given the D/E ratio and cannot find equity value without Re, and how do you find distress? just an explanation of how to find, do not answer the questions. I DO NOT WANT NUMBERS JUST EXPLANATIONS ON HOW TO FIND RE SINCE I AM NOT GIVEN EQUITY AND AN EXPLANATION FOR FOR TO FIND DISTRESS, I DO NOT WANT NUMERICAL ANSWERS I AM NOT TRYING TO SUBMIT YOUR WORK AS MINE I AM TRYING TO ASK HOW TO FIND THE DEBT TO EQUITY DO I TAKE UNLEVERED EQUITY VALUE TO DIVIDE DEBT BY AND FIND IT THAT WAY?

Value of DElth Rn EBIT 800,000 5.0% -I Tax Rate 40% 5.5% Trbill Rate 3.0% 6% T5): 11.0% 5.5% 10% H Beta 1.392500 1.48 3015 1.542234 1.60?016 1.6?3033 1.?56303 1,500,000 11.0% 13.0% 150% Calculate the required rate of return for the unleuered rm. (2 marks] Calculate the market 1ll'allue of the unleuerecl rm in proposition I. {2 marks] Calculate the WACC for an unlevered rm in proposition ll. [1 mark] 1.842805 1.939483 2.047619 [31 marks} Using the information from the table, calculate the 1value of the rm {proposition I}, cost of equity, and the WACC {proposition II} each level of debt. [16 maria] Calculate the present value of distress. {4 marks} Graph {on 2 separate graphs} the information for proposition | and proposition ll. {4 marks] Briefly explain the amount of debt company should use as a lettered company. [2 marks]