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this image should be un blurry. it has ALL OF THE information needed. i will litterally venmo whoever answers this in 1 hour please. he

this image should be un blurry. it has ALL OF THE information needed. i will litterally venmo whoever answers this in 1 hour please.
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he firm is considenng selling bonds and simultaneouly repurchasing some of its steek. If it moves to a capital structure with 30% debt based on market values, its cost of eguity. Fo will harease to 11% to reflect the increased nisk. Bonds can be sold at a cost, Re, of 9%, Bivoh ts a no-growth firm, Hence, all its earnings are paid out as dividends, farnngs are expected to be onstant over tane. a. What elfect would the use of leverage have on the value of the firm? 1. Increasing the financal leverage by adding debt results in a decrease in the firn's value. 11. Increasing the financaal leverage by asd ng debt has no effect on the firm's value. 111. Ifcreasing the finanoal leverage by adding dete revilts in an increase in the firm's value. b. What would be the since of fivob's stock? Do not round ithermediate caloulations. Round your answer to the nearest cent. per thare. C. What hapoens to the firm's eamings der share after the recuptalyation? Do not round intermediate caicilatiens. Round yeor antwer to the nearest cent. The firm its tes by 5 a. What effect would this use of leverage have on the value of the firm? 1. Increasing the financal leverage by adding debt results in a decrease in the firm's value. II. Increasing the financial leverage by adding debt has no effect on the firm's value. III. Increaseng the financal leverage by adding debt results in an increase in the firm's value. b. What would be the price of Rivoli's stock? Do not round intermediate calcalations. Round your answer to the nearest cent: $ per share c. What happens to the firm's eamings ber share after the recapitalization? Do not round intermediate calculations. Round your answer to the nearest cent. The firm its EPS by 5 d. The 5500.000 e.8It aiven previously is actually the expected value freci the following probability distributiont Determine the times-interest earned ratio for each probability. Use a minus wign to enter negabive values, if any, Do not round internediate ealculations. Round your aniswers to two Aerimal ralares What is the probabily of not coiseng the interst payment at the 30ny debt level? bo not round internediate calculatons. Round your ansier to two decimal places

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