The common stock and debt of iOS Corp. are valued at $49 million and $32 million, respectively. Investors currently require a 14% return on the common stock and an 4% return on the debt. There are no taxes. Calculate the weighted average cost of capital. Enter your answer as a percentage. Do not include the percentage sign in your answers. Enter your answer rounded to 2 DECIMAL PLACES WACC = 10.05 Correct response: 10.050.01 Click "Verity to proceed to the next part of the question HOS Corp issues an additional $8 million of debt and use this money to retire common stock, what will be the expected return on the stock? Assume that The change in capital structure does not affect the risk of the debt and recall that the WACC under the initial capital structure is 10.05%. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES. TE 15.95 Correct respon 15.9510.02 Click "Verity to proceed to the next part of the question Suppose you prefer the original capital structure with a 14% return on the common stock and WACC of 10,05%. If you have $2.500 to invest, how much should you invest in the stock and bonds of the restructured fim (which have return of 1595% and 4%, respectively) to obtain the same return as an investment in the stock of the original firm? Enter your answers founded to 2 DECIMAL PLACES Amount into equity = Number Amount into debt = Number Click "Verity to proceed The common stock and debt of iOS Corp. are valued at $49 million and $32 million, respectively investors currently require a 10% return on the common stock and an 4% return on the debt. There are no taxes Calculate the weighted average cost of capital. Enter your answer as a percentage. Do not include the percentage sign in your newers. Enter your awer founded to 2 DECIMAL PLACES WACC 10.05 Correct responset 10.050.03 Click "Verity to proceed to the next part of the question OS Corp issues an additional million of debt and use this money to rotre common stock, what will be the expected return on the stock? Assume that the change in capital structure does not affect the risk of the debt and recall that the WACC under the initial capital structure is 1000 Enter your answer is a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES TE 15.95 Correct repo 15.9510.02 Click "Verity to proceed to the next part the question TB15.95 Correct response: 15.9510.02 Click "Verity to proceed to the next part of the question Suppose you prefer the original capital structure with a 145 return on the common stock and a WACC of 10.05% If you have $2.500 to invest, how much should you invest in the stock and bonds of the restructured from which have returns of 1595% and respectively to obtain the same as an Investment in the stock of the original? Enter your answers founded to 2 DECIMAL PLACES Amount into equity = Number Amount in debt Number Click "Verily to proceed
