Intro LVMH currently has a debt-to-capital ratio of 10% and an average tax rate of 34, LVMH's bonds have a 3% yield to maturity. Using the CAPM, the firm estimates that its cost of equity is 12% The firm is considering a new capital structure with a debt-to- capital ratio of 30%. An investment bank has estimated that the yield to maturity on the company's bonds would rise to 5%. The risk-free rate is 2% and the expected equity market risk premium (MAP) is 7% Atempt 1/10 for 9.5pts. Part 1 IB What is LVMH's current WACC? 3. decima Submit Part 2 SB Attempt 1/10 for 9.5 pts. What is the beta of LVMH's common stock? 2. decimo Submit Part 3 FB Amampt 1/10 for 9.5 pts. What would be the beta if the company didn't have any debt (unlevered betal? 2. decima Submit Part 4 O Atempt 1/10 for 9.5 pts. What would be the new beta if the company went ahead with the recapitalization? Submit Part 5 IB Atempt 1/10 for 9.5 pts. What would be the new cost of equity after the recapitalization? 3+ decimo Submit Part 6 SBP Attempt 1/10 for 9.5 pts. What would be the new WACC after the recapitalization