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solve both please Currenty, Forever Flowers inc. has a capital structure consisting of 35% debt and 65% equity. Forever's debt currently has an 7% vield

solve both please
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Currenty, Forever Flowers inc. has a capital structure consisting of 35% debt and 65% equity. Forever's debt currently has an 7% vield to maturity. The risk-free rate (rRF) is 5%, and the market risk premium (mMrRF) is 7%. Using the CAPM, Forever estimates that its cost of equily is currently 11%. Tho company has a 40% tax rate. a. What is Forever's current WACC? Round your answer to two decimal places. 8% b. What is the current beta on Forever's common stock? Round your answer to two decimal places. c. What would forever's beta be if the company had no debt in is capital structure? (That is, what is Forever's unlevered beta, bu?) Do not round intermediate caiculations, Round your answer to two decimal placts. Forever's financial staff is considering changing its capital structure to 40% debt and 60% equity. If the company went ahead with the proposed change, the yeid to maturity on the company's bonds would rise to 10%. The proposed change will have no effect on the company's tax rate. d. What would be the company's new cost of equity if it adopted the proposed change in captal structure? Do not round intermediate calculations. Round your answer to two decimal places. (2. e. What would be the company's new Wace if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places. s t. Based on your answer to part e, would you advise forever to adopt the proposed change in capltal structure? Situstional Software Co. (SSC) is trying to establish is optimal copital structure. fts current capital structure consists of 25% debt and 75% equity; however, the CEO believes that the firm should use more debt. The risk-free rate, raF, is 4%; the market risk premium, RPM, is 6\%; and the firm's tax rate is 40%, Currentry, 55C 's cost of equitir is 15%, which is determined by the CAPM. What would be SSCs estimated cost of equity if it changed its cepital structure to 50% debt and 50% equity? Do not round intermediete calculations. Round your answer to two decimal places

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