picture 1

1 and 2 answer choices are a)0.5 b)0.333 c) 0.667

3. answer choices are a) 11.68 b) 12.56 c)15.94

The total invested capital of Farmer Brown's Restaurant is $3,000, $1,000 of which is debt. The firm's required rate of return on equity is 14.7% and its after tax cost of debt is 5.65% Calculate Brown's WACC. The Debt to Capital ratio is [Select] The Equity to Capital ratio is (Select] Farmer Brown's WACC is (Select] Question 11 1 pts Given the chart below. Calculate the stock price and WACC at each level of debt. Select debt level that offers the optimum capital structure Line Number D/Capital Ratio E/Capital Ratio DPS ra (1 - T) % 7, % SP WACC% 12.5% 87.5% $3.26 4.9% 12.51% 25% 75% $3.55 5.4% 13.2% 37.5% 62.5% $3.77 6.9% 14.16% 50% $3.90 8.4% 15.6% 50% Line 4D/E -50/50 Line 2D/E - 27/75 Line 3D/E-37.5/625 Line 1 D/E = 12.5/87.5