With the information provided, how do I determine which scenario provides the optimal debt-to-equity ratio and why?

E E B B Verts side Zoom Gridlines Navigation Pane 100% Focus Immersive - Reader Web - Layout Multiple Pages Page Width New Window Arrange Al Split b Synchronous scrolling Reset Window Position I switch Windows Morros Prop to Side Page Movement With the information proided, how da determine which senario provides the optimal debt te equity ratio for Napoli P a? And Why a. What will be the amount ofequity after the wypcial dividend under ach scenarie? (0 ) Scenario 1 Amount What will be the weighted average cost of capital ( WACC) der each scenario? WACC (Weight of Debt Cost of Debo +(Weight of Equity Cast of Equity) Scenario 1 2 WACC 15.00% 4.419% 13.2729 12.40 1 .54% 10.67999.818% What will be the special cash dividend per share inued to Napoli Pizza's shareholders! Dividend per Share - Debted/Outstanding Shares $0 $200 $400 S1,200 Equity after Dividend $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 b. What will the det aily ratio (6) bewer each senario? Scenario Dividend Per 50.00 52.00 54.00 6.00 $8.00 510.00 $12.00 Scenario Debul quity ) 0% 11.1139 What is the estimated total asset value and total equity value ad cach scenario? c. What will be the weights of debt degully under each are? Estimated Asset Value - Cash flow / WAAC Scenario Weight of Debt 0% Weight of Equity 100% 3 20% 0% 30% 40% 10% 0% Estimated Equity Value = Estimated Asset Value - Liabilities L What will be the after-tax cost of debt under each snarie! Asset Value $2,000 $2,077.71 1.52,260.3952,418.77 82.59.65 6035 $3.0025 $1.877.71 251.860 1951,818.77 $1,799.65 $1.809.95 $1,085.61 Cost of Debt-Treasury Bad Rate + Risk Premium) (1 - Tax Rate) Equity Value $2.000 $1.855.61 Scenario Afer Tax Interest Rate 1 309% 2 3.09% 3 3.75% 4 4.35% 1. What is the estimated market value pershare including the special cash didend Estimated Asset Value Chow/WAAC What will be the levered beta under each w aria? Estimated Equity Value Estimated Anet Value -Liabilities Lared Betaalveredeta! (Dubuquity1 - Tax Rate) Scenario Value Per $20.00 SIR.783 S # 60 SIR.19 $17.99 Lesered Beta 150 DividendPer $2.00 1452.00 54.00 56.00 What will be the cost of equity (CAPM) erach w arto? Total Value Per Share $22.00 20.78 592.60 $34.19 $25.99 CAPM Risk Freeleta Market Ink Premium) k. It is ahe useful to determine the effect of recapitalization ca earnings per share focus Type here to search