Question 23 5 pts Michigan, Inc. E = $200,000 D = $50,000 Current levered Beta BL = 1.20, Taxes = 25% What is the unlevered beta at this capital structure? BU - BL + [1 +1 -T) (D/E) Question 24 5 pts Continuing from the previous question: Michigan, Inc added $50,000 more debt to it's capital structure. So, it becomes: E = $200,000 D = $100,000 Taxes = 25% What would be the new levered beta of Michigan? BL = BU X[1 +(1 - T) x (D/E)] Question 25 10 pts g= 3.0% WACC = 12.00% D = FCFO = $2,200 7,000 What is the Value of Equity? FCF1 = FCFox (1 + g) Vop = FCF1 = (WACC - g) Equity = Vop-D