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Please answer all! Thumbs up! The common stock and debt of Windows Phone Corp. are valued at $58 million and $22 million, respectively. Investors currently

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Please answer all! Thumbs up!
The common stock and debt of Windows Phone Corp. are valued at $58 million and $22 million, respectively. Investors currently require a 12% return on the common stock and an 8% return on the debt. There are no taxes. Calculate the weighted average cost of capital. Enter your answer as a percentage. Do not include the percentage sign in your answers. Enter your answer rounded to 2 DECIMAL PLACES. WACC = 10.90 Correct response: 10.910.02 Click "verify" to proceed to the next part of the question. This question has 3 parts, so you will be clicking verify 3 times. If Windows Phone Corp. issues an additional $15 million of debt and uses this money to retire common stock, what will be the expected return on the stock? Assume that the change in capital structure does not affect the risk of the debt, and recall that the WACC under the initial capital structure is 10.9%. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES TE= Number Myers Corporation is currently all equity financed and has a value of $55 million. Investors currently require a return of 19.10 percent on common stock Myers pays no taxes. Myers plans to issue $30 million of debt with a return of 7.5 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions Enter your response below. 55 Correct response: 55million This question has 4 parts, so you will be clicking verify 4 times. Given that the firm will still have a value of $55 million, what will be the value of the equity after the debt issue? Please state your answer in milions. Enter your response below. Number million A firm currently has a debt-equity ratio of 0.8. The debt, which is virtually riskless, pays an interest rate of 5%. The expected rate of return on the equity is 13 %. What is the Weighted-Average cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not Include the percentage sign in your answer. WACC = 9.44 Correct response: 9.44+0.02 What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 0.37 Assume the firm pays no taxes, the cost of debt does not change, and that the original WACC is 9.44 %. Enter your answer as a percentage rounded to two decimal places. Do not include percentage sign as part of your answer. Return on Equity Number Marcus Corporation is currently all equity financed and has a value of $85 million. Investors currently require a return of 14.9 percent on common stock. Marcus has a marginal tax rate of 30 percent, Marcus plans to issue $30 million of debt with a return of 4.2 percent and use the proceeds to repurchase common stock What will be the value of the firm after the debt issue? Please state your answer in millions rounded to two decimal places Enter your response below 94 Correct response: 940.1million This question has 4 parts, so you will be clicking varity 4 times. Given that the value of the firm after the debt issue will be $94 million, what will be the value of the equity after the debt issue? Please state your answer in millions rounded to two decimal places Enter your response below. Number million Rozanski Co. currently has EBIT of $45,000 and is all equity financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 25% of taxable income. The cost of equity for this firm is 16% What is the market value of the firm? Enter your answer rounded to two decimal places. 210937.50 Correct response: 210,937,520.01 Click "Verity" to proceed to the next part of the question. This question has 3 parts, so you will be clicking verify 3 times. Suppose the firm has a value of S210,937.5 when it is all equity financed. Now assume the firm issues $40,000 of debt paying Interest of 7% per year and uses the proceeds to retire equity. The debt is expected to be permanent What will be the value of the firm? Enter your answer rounded to two decimal places. Number What will be the value of the equity after the debt issue? Enter your answer rounded to two decimal places Number

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