QUESTION 9 Ryder Systems has expected earnings before interest and taxes of $1.070,000, an unlevered cost of capital of 10.3 porcent, and a tax rate of 25 porcent. The company has $3,100,000 of debt that carries a 6.2 percent coupon. The debt is selling at par value. Assume the firm maintains this debt amount forever. What is the interest tax shield of the fimm in a given year? What is the value of the firm? $48,050 and $8,247,933 $48,060 and $8,828,431 $48,050 and $8,566,262 $49,882 and 50,506,202 $50,092 and $8,566,262 QUESTION 10 Tellabs Company is currently an al equity firm. Its current cost of equity is 10.5 percent and the tax rate is 25 percent. The firm has 480,000 shares of stock outstanding with a market price of $45 a share. The firm is considering capital restructuring that allows $4.4 milion of debt with a coupon rate of 6.2 percent. The debt wil be sold at par value and the proceeds will be used to ropurchase shares. What is the value por share after the recapitalization Print: You need to determine the total value of equity after recapitalization that accounts for the PV of interest tax shield and the number of shares outstanding after repurchased) $48.12 $47.88 $47.50 $47.26 $46.84