Understanding the optimal capital structure Review this situation Transworld Com Corp. is trying to identify its optimal capital structie Transmold Cons Corp has thered the following financial formation to help with the main IPS Debt Ratio Equity Flats 30 70 40 50% 6096 40% 70% 30 DPS Stock Price 0.34 22.35 24.56 0.51 25.76 0.5% 1.72 1.28 0.62 26.42 Which capital structure shown in the preceding table is Transworld Consortium Corp. optimal capital structure? O Debit rate 60%, equity ratio -40% Debt ratio -50%, equity ratio = 50% Debt ratio 70% equity ratio - 30% O Debit ratio = 30%, equity ratio = 70% Debit ratio 40%, equity ratie -60% Globex Corp. has capital structure that consists of 40% debit and 60% equity. The firm's current betais 1.15, but management wants to understand Globex Corps market risk without the effect of leverage IF Globex Corp has a 35 tax rate, what is its unlevered beta O 0.72 O 0.14 O 0.80 O 0.96 Now consider the case of another company: Us Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before-tax cost of debt is 10%, and its tax rate is 35%. It currently has a levered beta of 1.15. The risk free rate is 2.5%, and the risk premium on the market is 8%, US Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt to increase to 12% US Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before tax cost of debt is 10%, and its tax rate is 35%. It currently has a levered beta of 1.15. The risk-free rate is 2.5%, and the risk premium on the market is 8% US Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt to increase to 12% First, solve for US Robotics Inc.'s unlevered beta. Use US Robotics Inc.'s unlevered beta to solve for the firm's levered beta with the new capital structure. Use US Robotics Inc.'s levered beta under the new capital structure, to solve for es cost of equity under the new capital structure. What will the firm's weighted average cost of capital (WACC) be if it makes this change in its capital structure? 09.1% O 11.4% O 12.5% 08.09