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Levering the required return on equity with Hamada, MM, and APV Nodebt, Inc., has zero debt (Wd - 0). It is considering restructuring to increase

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Levering the required return on equity with Hamada, MM, and APV Nodebt, Inc., has zero debt (Wd - 0). It is considering restructuring to increase its percentage of debt to wd = 25%. Its beta is 1.4, the risk-free rate is 5%, the market risk premium is 6%, and if it restructures, the required return on its debt will be 10%. Nodebt's tax rate is 25%. a. Using the Hamada equation, calculate Nodebt's required return on equity after the recapitalization. Do not round Intermediate calculations. Round your answer to two decimal places. % b. Using the MM model with corporate taxes (Equation 17-16) calculate Nodebt's required return on equity. Do not round Intermediate calculations, Round your answer to two decimal places. c. Using the APV model, calculate Nodebt's required return on equity. Do not round intermediate calculations. Round your answer to two decimal places. % A

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