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Part II Question. 3 Qivang Toy Outlet has unlevered cost of capital of 10%. The corporate tas And the berpetual expected earnings before interest and

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Part II Question. 3 Qivang Toy Outlet has unlevered cost of capital of 10%. The corporate tas And the berpetual expected earnings before interest and tax is $1600. The compary has 53000 in perme ands outstandine that have an as coupon and pay interest annually. The bonds are seling at the par value. The total number of share outstandirg is 1000 a) What is the value of the unievered firm? (2 points) b) What is the value of the levered firm? (2 points) Part II Question 3 c) What the share price of the levered firm? (2 points) Part II Question 3 d) What is the tax adjusted weighted average cost of capital) (2 points (Hint: levered frm value =after tax cashfow/tax ad). WACC) e) What is the capital structure of the firm? (2 points) Part II Question. 3 Qivang Toy Outlet has unlevered cost of capital of 10%. The corporate tas And the berpetual expected earnings before interest and tax is $1600. The compary has 53000 in perme ands outstandine that have an as coupon and pay interest annually. The bonds are seling at the par value. The total number of share outstandirg is 1000 a) What is the value of the unievered firm? (2 points) b) What is the value of the levered firm? (2 points) Part II Question 3 c) What the share price of the levered firm? (2 points) Part II Question 3 d) What is the tax adjusted weighted average cost of capital) (2 points (Hint: levered frm value =after tax cashfow/tax ad). WACC) e) What is the capital structure of the firm? (2 points)

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