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Please answer both! Thumbs up! Myers Corporation is currently all equity financed and has a value of $55 million. Investors currently require a return of
Please answer both! Thumbs up!
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 wil be clicking verily 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 millions Enter your response below 25 Correct response: 25million Given that the value of the equity after the debt issue will be $25, what will be the expected return on the stock after the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage symbol Enter your response below 33.02 Correct response: 33.02.40.01 Given that the expected return on the stock after the debt issue is 33.02%, what will be the Weighted Average Cost of Capital atter the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage symbol. Enter your response below Number Marcus Corporation is currently all equity financed and has a value of $86 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: 94+0.01 million This question has 4 parts, so you will be clicking verily 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 64 Correct response: 6440.01 million Given that the value of the equity after the debt issue will be $64 million, what will be the expected return on the stock after the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage sign as part of your answer. Enter your response below 18.41 Correct response: 18.41+0.02 Given that the expected return on the stock after the debt issue will be 18.41%, what will be the Weighted Average Cost of Capital after the debt issue? Do not enter the percentage sign as part of your answer. Enter your response below Number Step by Step Solution
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