QUESTION 4 Cedar Company is an all equity firm and has a cost of capital of 8.1 percent. The firm is considering switching to a debt-equity ratio of 2.40 with a pretax cost of debt of 6.2 percent. What will the firm's cost of equity be if the firm makes the switch? The tax rate is 25% 9.79% 10.0496 10.36% 10.87% 11.5296 QUESTION 5 Pine Corporation has debt with both a face and a market value of $1,540,000. This debt has a coupon rate of 6 percent and pays interest annually. The expected earnings before interest and taxes are $830,000, the tax rate is 25 percent, and the unlovered cost of capital is 10.4 percent. What is the firm's cost of equity 11.45% 11.73 11.92% 12.03% 12.21% QUESTION 6 Airgas Company has a cost of equity of 11.6 percent and a pretax cost of debt of 6.5 percent. The debt-equity ratio is 1.80 and the tax rate is 25 percent. What is the unlevered cost of capital? 0.26% 8.32% 9.5396 9.75% 8.6796