lery A l add umbered problems appear in Append Problema 1-7 12 kell has tied operating costs of 4.0 and anables of $5 per unit. If it sells See on the product for $95 per unit what is the break-even quantity Detal Design (Disabeta of 0.75. The tax rate is 04 and DD is financed with 40% debt What is the company's unlevered beta? Ether Enterprise has an unlevered beta of 10 thier is financed with 50% debt and has a hees eed beta of 16. If the risk-free rate is 555 and the market risk premium is 6%, how much is For the additional premium that ther's shareholders require to be compensated for financial risk? 174 Gourmet Foods To Go has the following financial information: France Book Equity 4.000.000 Tax Rate 26 EBIT 5500.000 Gourmet Foods decides to borrow $2,000,000 at a 7% interest rate and, with the proceeds, buy back $2,000,000 worth of their stock. Calculate return on equity before and after the loan and buy-back is made 2-5 An unlevered firm has a value of $800 million. An otherwise identical but levered firm has MM Model with 560 million in debt. Under the MM zero-tax model, what is the value of the levered firm Zero 126 An unlevered firm has a value of $600 million. An otherwise identical but levered firm has MM Model with $120 million in debt. If the corporate tax rate is 30%, what is the value of the levered nurm Corporate Taxes using the MM corporate-tax model? 12-7 An unlevered firm has a value of $600 million. An otherwise identical but levered firm Model with Corporate has a million in debt. Under the Miller model, what is the value of a levered nem if the and Personal Taxes corporate tax rate is 34%, the personal tax rate on equity is 10, and the personal tax rate on debt is 35? re PIUDICUS Easy Answers to add numbered problems appear in Appendix A Problem 1-7 12 . Kirk h asid operating costs of $4,800,000 and variable costs of 575 per unit. If it sells d om the product for per unit, what is the break even quantity 12-2) Digital Design (Disabeta of 67. The tax rates and DD is financed with 40% debt do What is the company's unlevered beta? 12 thier Enterprise has an unlevered beta of 10 Ethier is financed with a debt and has a lensa of the riskinerales and the market risk premium is how much is Finance the additional premium that ther's shareholders require to be compensated for financial ? 024 Gourmet Foods To Go has the following financial information Larrage Debt: Book Equity $4,000,000 Tax Rate 26' FIT: 550.000 $0 Gourmet Foods decides to borrow $2,000,000 at a 7% interest rate and, with the proceeds, buy back 52,000 worth of their stock. Calculate return on equity before and after the loan and buy-buick is made. 2-5 An unlevered firm has a value of $800 million. An otherwise identical but levered firm has MM Model with S60 million in debt. Under the MM zero-tax model, what is the value of the levered firmi 128 An unlevered firm has a value of $600 million. An otherwise identical but levered firm has MM Model with $120 million in debt. If the corporate tax rate is 30%, what is the value of the levered firm Corporate Taxes using the MM corporate-tax model? 12:7 An unlevered firm has a value of S600 million. An otherwise identical but levered firm Mile Model wat Corporate has $240 million in debt. Under the Miller model, what is the value of a levered firm if the and Personel Taxes corporate tax rate is 34%, the personal tax rate on equity is 10%, and the personal tax rate on debt is 35%