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The common stock and debt of IOS Corp. are valued at $ 7 1 million and $ 3 9 million, respectively. Investors currently require a
The common stock and debt of IOS Corp. are valued at $ million and $ million, respectively. Investors currently require a return on the common stock and an 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 DECIMAL PLACES.
WACC
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Suppose iOS Corp. had an additional $ million of debt and had $ million less of common stock, what would be the expected return on the stock? Assume that the change in capital structure would not affect the risk of the debt, and recall that the WACC under the initial capital structure is Enter your answer as a percentage. Do not include the percentage stgn in your answer. Enter your answer rounded to DECIMAL. PLACES.
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Suppose you would like to be able to invest in the firm if they had the capital structure above with a return on the common stock and a WACC of If you have $ to invest, how much should you invest in the stock and bonds of the original firm which have returns of and respectivoly to obtain the samo retum as an investment in the stock of tho firm if it had $ million of dobt and $ million of equity? Entor your answors rounded to DECIMAL PLACES.
Amount into equity
Amount into dobt
Please solve the last part
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