Moving to other with responde Question 3 Suppose that DH textile company plans to use some debt financing. The firm is currently 100% equity financed. The following table reports the financial data for the two fina thousand Dirhams. Suppose that the cost of capital is 12% Input data 100% Equity 60% debt Total Assets 32,000 24,000 32,000 Debt 26% 12,800 0 19,200 No. of shares 2,000 1200 Tax rate 35% EBIT 4,600 4,600 Total equity 35% Required? Compute the ROE and EPS ratios (2 pts.) Compute the value of the firm based on the two opticas (2 pts.) Should Docile company restructure its capital structure to 60 debtor Equay Discuss how the chain capital structure impact the vale of the form (2 pts.) Which alternative of financing should the company we there is no corporate tax paym? (1 pt.) For ALTFORM B TV5 100 IXO0QZX X30 11 22 A O Moving to other with responde Question 3 Suppose that DH textile company plans to use some debt financing. The firm is currently 100% equity financed. The following table reports the financial data for the two fina thousand Dirhams. Suppose that the cost of capital is 12% Input data 100% Equity 60% debt Total Assets 32,000 24,000 32,000 Debt 26% 12,800 0 19,200 No. of shares 2,000 1200 Tax rate 35% EBIT 4,600 4,600 Total equity 35% Required? Compute the ROE and EPS ratios (2 pts.) Compute the value of the firm based on the two opticas (2 pts.) Should Docile company restructure its capital structure to 60 debtor Equay Discuss how the chain capital structure impact the vale of the form (2 pts.) Which alternative of financing should the company we there is no corporate tax paym? (1 pt.) For ALTFORM B TV5 100 IXO0QZX X30 11 22 A O