Please find the attachment and see my questions. These questions are related to finance.

1. BrandCo currently has 50 million shares outstanding. If BrandCo's shares are trading at $19.16 per share, what is the company's market capitalization (value of equity)? Assuming the market value of debt equals today's book value of debt, what percentage of the company's enterprise value is attributable to debt, and what percentage is attributable to equity? Using these weights, compute the weighted average cost of capital. Assume the pretax cost of debt is 8 percent, the cost of equity is 12 percent, and the marginal tax rate is 25 percent. Describe your answer. ( 1 page - Times new roman - 12 font size) 2. Using free cash ow computed in Question 1 and the weighted average cost of capital computed in Question 2, estimate BrandCo's enterprise value using the growing-perpetuity formula. Assume free cash ow grows at 5 percent. Describe your answer. ( 1 page - Times new roman - 12 font size) Please explain to the class with your solution and point of view. 1. BrandCo currently has 50 million shares outstanding. If BrandCo's shares are trading at $19.16 per share, what is the company's market capitalization (value of equity)? Assuming the market value of debt equals today's book value of debt, what percentage of the company's enterprise value is attributable to debt, and what percentage is attributable to equity? Using these weights, compute the weighted average cost of capital. Assume the pretax cost of debt is 8 percent, the cost of equity is 12 percent, and the marginal tax rate is 25 percent. 2. Using free cash ow computed in Question 1 and the weighted average cost of capital computed in Question 2, estimate BrandCo's enterprise value using the growing-perpetuity formula. Assume free cash ow grows at 5 percent. \far stu ed d vi y re aC s o ou urc rs e eH w er as o. co m is sh Th https://www.coursehero.com/file/6286850/Homework-2-Ch6-ch60001/ ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m is sh Th https://www.coursehero.com/file/6286850/Homework-2-Ch6-ch60001/ Powered by TCPDF (www.tcpdf.org)