Kendall Corporation has no debt but can borrow at 8.25 percent. The firms WACC is currently 15 percent, and there is no corporate tax.

What is the companys cost of equity?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.

If the firm converts to 20 percent debt, what will its cost of equity be?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

If the firm converts to 55 percent debt, what will its cost of equity be?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the companys WACC in parts (b) and (c)?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.

Farmington Company can borrow at 6.8 percent. The company currently has no debt and the cost of equity is 11.2 percent. The current value of the firm is $635,000. The corporate tax rate is 23 percent. What will the value be if the company borrows $350,000 and uses the proceeds to repurchase shares?

Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.

Byrd Enterprises has no debt. Its current total value is $49.4 million. Assume debt proceeds are used to repurchase equity.

Ignoring taxes, what will the companys value be if it sells $19.6 million in debt?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.

Suppose now that the companys tax rate is 22 percent. What will its overall value be if it sells $19.6 million in debt?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.