The Chief Financial Officer (CFO) of the Q15.36T Company is interested to identify the cost of capital and value of the company. Currently, the Q15.36T is an all-equity company. Earnings before interest and taxes (EBIT) for the company is expected to be $72,433 forever, and the cost of capital is currently 15.36 percent. The corporate tax rate applicable to this company is 32.2 percent.

Requirement-A. Calculate the market value of Q15.36T. <1 mark>

Requirement-B. Suppose Q15.36T floats a $34,462 debt issue and uses the proceeds to reduce share capital. The interest rate is 10.81 percent. Calculate the new value of the business. <1 mark>

Requirement-C. Calculate the new value of equity. <1 mark>

Requirement-D. Calculate the cost of equity of Q15.36T after the debt issue. <1 mark>

Requirement-E. Calculate the weighted average cost of capital. <1 mark>

Requirement-F. What are the implications for capital structure?<1 mark>