-The value of the levered company - The equity cost of capital of the levered company Data and Description: There is a unlevered company (all equity funded - no debt) worth $80 million which has an overall cost of capital of 10%. If there was a second company which had the same asset structure (left-hand side of the balance sheet) and operated in the exactly the same fashion but was funded (right-hand side of the balance sheet) with 50% debt financing (with an 8% interest rate) and 50% equity financing, what would the value of the second company be? And what would the equity cost of capital be? (Assume the tax rate is 40%)