Summit Corp. has a market debt$/$equity ratio of $0\mathrm{.}65$ and a tax rate of $40\%.$ The cost of debt is $7\%.$ How much do the interest tax shields from its debt lower the WACC of Summit?

$32.$Moose Pastures Inc is considering a rights offer to raise $$500,000.$ The stock currently sells for $$5\mathrm{.}25/$share and there are

$1,493,425$ shares outstanding. The underwriters believe that the issue will be completely taken up if the subscription price is set at $$4\mathrm{.}50/$ share. If the underwriters take a $7\%$ spread, how many shares will be issued?

$33.$Moose Pastures Inc $($MPI$)$ is an unlevered firm with net income of $$435,500.$ The unlevered cost of capital is $15\%$ and the corporate tax rate is $33\%.$ What is the value of MPI if the net income is expected to continue in perpetuity? $($Assume perfect capital markets with taxes.$)$

$34.$Summit Corp faces a tax rate of $35\%,$ a $7\%$ cost of debt and a $22\%$ cost of levered equity. The debt to equity ratio of the firm is $0\mathrm{.}25$ and EBIT is $$300,000.$ What is the unlevered value of the firm? $($Assume perfect capital markets with taxes$)$