QUESTION 23 Use the following information to solve for questions 23 - 28. Yesterday Moreland Inc. had zero debt and $425m worth of equity. Investors required an expected return of 9% per year. Today they decided to do a financial recapitalization and purchase $150m of debt at a rate of 5% and use the proceeds to buyback stock. If Moreland Inc, pays no taxes and there are no other special advantages of debt financing, what will the value of the firm's capital be after it issues the debt? (Round answer to a whole number in millions, but without the "m" or "millions" attached) QUESTION 24 Will Moreland Inc.'s new cost of equity be higher, lower, or remain the same? a. It is dependent on how the share price reacts to the recap plan b. Remain the same c Lower d. Higher QUESTION 25 Ignoring taxes and any other special advantages of debt financing, what will the new cost of equity be? (Put answer in percent form with two decimals, no "%" sign) QUESTION 26 Again, Ignoring taxes and any other special advantages of debt financing, what will the new WACC be? (Put answer in percent form with two decimals, no "%" sign) QUESTION 27 Now, if there is a 21% marginal corporate tax rate, 35% average tax rate, and no other special advantages of debt financing, what will the value of the firm's tax shield be after it issues the debt? (Put answer in dollar form with two decimals, no "$" sign) QUESTION 28 a. Will this issuance of debt increase, decrease, or have no effect on taxes paid? Decrease b. No effect c. It depends on the tax structure within the company d. Increase