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retire the old debt in order to issue new debt, and the rate on the new debt will be 9%. BEA has a beta of

image text in transcribed retire the old debt in order to issue new debt, and the rate on the new debt will be 9\%. BEA has a beta of 1.0. a. What is BEA's unlevered beta? Use market value D/S (which is the same aswd/ws ) when unlevering. Round your answer to two decimal places. b. What are BEA's new beta and cost of equity if it has 35% debt? Do not round intermediate calculations. Round your answers to two decimal places. Beta Cost of equity % c. What are BEA's WACC and total value of the firm with 35% debt? Do not round intermediate calculations. Round your answer to two decimal places. % Round your answer to three decimal places. million

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