Optimal Capital Structure with Hamada

the new debt will be $8\%.$ BEA has a beta of $0\mathrm{.}8.$

a$.$ What is BEA's unlevered beta? Use market value D$/$S $($which is the same as $\frac{w_d}{w_s})$ when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.

b$.$ What are BEA's new beta and cost of equity if it has $30\%$ debt? Do not round intermediate calculations. Round your answers to two decimal places.

Beta:

Cost of equity:

$\%$

c$.$ What are BEA's WACC and total value of the firm with $30\%$ debt? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

decimal places.

$

million

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