SpaceCo is currently leveraged with a debt to value ratio of $24\mathrm{.}0\%.$

Under a new capital structure, its new debt to value ratio will change to $55\mathrm{.}0\%.$

You are a financial analyst following the company's development and find the following information:

the current after$-$tax WACC is $13\mathrm{.}5\%$

marginal corporate tax rate is $44\mathrm{.}0\%$

the yield to maturity on its outstanding bonds is $8\mathrm{.}2\%$ and is expected to remain constant

the risk$-$free rate is $3\mathrm{.}0\%,$ and

the expected return on the market portfolio is $9\mathrm{.}5\%$

Assuming no change in the size of the firm and that changes in valuation are only due to the change in capital

structure:

What is the current equity cost of capital?

$\%($Give answer as $\%$ to $2$ decimal places$)$

$1\mathrm{.}1.$ What is the unlevered beta risk of the firm? $($i$.$e$.,$ the risk as if it had no debt$)$

$($Give answer as a number to $4$ decimal places$)$

If the firm changes its capital structure as proposed, what would be the new equity cost of capital?

$\%($Give answer as $\%$ to $2$ decimal places$)$

What is the new Weighted Average Cost of Capital?

$\%($Give answer as $\%$ to $2$ decimal places$)$SpaceCo is currently leveraged with a debt to value ratio of $24\mathrm{.}0\%.$

Under a new capital structure, its new debt to value ratio will change to $55\mathrm{.}0\%.$

You are a financial analyst following the company's development and find the following information:

$$ the current after$-$tax WACC is $13\mathrm{.}5\%$

$$ marginal corporate tax rate is $44\mathrm{.}0\%$

$$ the yield to maturity on its outstanding bonds is $8\mathrm{.}2\%$ and is expected to remain constant

$$ the risk$-$free rate is $3\mathrm{.}0\%,$ and

$$ the expected return on the market portfolio is $9\mathrm{.}5\%$

Assuming no change in the size of the firm and that changes in valuation are only due to the change in capital structure: