Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the thalysis. Which capital structure shown in the preceding table is Universal Exports Incis optimal capital structure? Debt ratio =30%; equity ratio =70% Debt ratio =50%; equity ratio =50% Debt ratio =70% : equity ratio =30% Debt ratio =40%; equity ratio =60% Debt ratio 60%; equity ratio =40% Globex Corp. has a capital structure that consists of 30% debt and 70% equity. The firm's current beta is 1.25 , but management wants to understand Giobex Corp's market risk without the effect of leverage. If Globex Corp, has a 40% tax rate, What is its unlevered beta? 1.14 0.89 0.99 1.19 Now consider the case of another company: US Robotics inc. has a current capital structure of 30% debt and 70% equity. its current before-tax cost of debt is 6%, and its tax rate is 40%. It currently has a levered beta of 1.25 . The risk-fren rate is 3%, and the risk premium on the market is 8%, US Robotics inc. is considering changing its caphal structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before tax cost of debt to increase to 8%. First, salve for us Robotes incis unlevered beta. Use us Robosci incis unlevered beta to solve for the firm's levered beta with the new capital structure. Use US Robotics Incis livered beta under the new capltal structure, to solve for its cost of equity under the new capital structure. What will the firm's weighted average cost of capital (WACC) be if it makes this change in its capital structure? 9.6% 10.1% 7.1% 11.196