The required return on the assets of your EFIN $603$ firm is $30\%.$ Its cost of debt is $25\%,$ and the debt$-$to$-$assets ratio is $45\%.$

i$.$ What is EFIN $603$ firm$$s cost of equity?

ii$.$ What would $60\%$ cost of equity imply about the debt$-$to$-$equity ratio of a competitor which is similar to you in all other respects?

iii. Based on this information, what is the proportion of equity in your competitor?

iv$.$ What is the proportion of equity in your firm?