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With method of solution GenuinelCare is a company that offers residential health care services. The company has $100 million in interest-bearing debt (in book value

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GenuinelCare is a company that offers residential health care services. The company has $100 million in interest-bearing debt (in book value and market value terms). The firm has 25 million shares trading at $15 a share, and the unlevered beta of firms in the health care business is 0.8. The firm has a current rating of B. with a default spread of 0.05 over the risk free rate. The risk tree rate is 0.045, the market risk premium is 0.07 and the corporate tax rate is 10% Estimate the debt to capital ratio for the firm, Estimate the debt to equity ratio for the firm What is the beta levered for the firma Estimate the cost of debt for the firm, Estimate the after tax cost of debt for the firm. Estimate the cost of equity for the firm. Estimate the cost of capital for the firm

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