- wishes to change its present capital structure (D/E ratio) from (10%/90%) to (20%/80%) - L=1.30Rf=3.0%,rM=12.00%, of shares outstanding (n)=150 - FCF0=$300gt=2.0% Current rD=26.00% Tax rate =30.0%, 1. At the new capital structure (20%/80%), what will be their total risk (t) ? u=L[1+(1T)(W0W5)]L=U[1+(1T)(W0WS)] 2. At the new capital structure (20%/80%), what will be their required cost of stock ( rs) ? rs=r1+l(rmri) [Enter answer in decimal points, e.g. 15.75\% as 0.1575 3. At the new capital structure (20%/80%), their new r0=6.5%. What will be their cost of capital (WACC)? WACC=W0r0(1T)+Wsrs [Enter answer in decimal points, e.g. 15.75% as 0.1575 ] 4. At the new capital structure (20%/80%), what is their Value of Operations (VOP) ? V0p=FCF1(WACCg) 5. At the new capital structure (20%/80%), What is the Value of Total Equity? E=WsVop