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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

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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 analysis. Debt Ratio Equity Ratio 30% 40% 50% 60% 70% 70% 6096 50% 40% 30% 7.00% 7.20% 7.70% 8.90% 10.30% WACC 10.50% 8.61% 10.80% 8.21% 11.40% 8.01% 12.20% 8.08% 13.50% 8.38% which capital structure shown in the preceding table is Universal Exports Inc.'s optimal capital structure? Debt ratio-40%; equity ratio = 60% Debt ratio = 70%; equity ratio 30% Debt ratio = 50%; equity ratio-5096 Debt ratio = 60%; equity ratio = 40% Debt ratio . 3096; equity ratio = 70% Consider this case: Globo-Chem Co. is an all-equity firm, and it has a beta of I. It is considering changing its capital structure to 60% equity and 40% debt. The firm's cost of debt will be 10%, and it will face a tax rate of 45%. What will Globo-Chem Co.'s beta be if it decides to make this change in its capital structure? 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 10%, and its tax rate is 45%. It currently has a levered beta of 1.10. The risk-free rate is 3.5%, and the risk premium on the market is 8%. u.s. Robotics Inc. is considering changing its capital 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 12%. First, solve for us. Robotics Inc.'s unlevered beta.[ Relever us. Robotics Inc.'s beta using the firm's new capital structure. [ Use u.S. Robotics Inc.'s levered beta under the new capital 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

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