Your company is currently debt free. Your company has $200,000 in assets. Your company has a net profit of $70,000. You could invest the money you have tied up in your company and make 10% return in the market with the same risk as your company. Debt will cost you 7% You are in the 20% tax bracket.

a. What is your internal growth rate?

b. What does that mean?

c. If you decide to finance 50% of you company with debt, how would that affect your cost of capital?

d. What is your cost of capital if your use 100% debt to finance your company?

e. What is your cost of capital if you use 100% equity?

HELP PLEASE!!!!