12. CAN Cola recently reported it has $46.8 billion in debt and $24.0 billion of equity.What fraction of the firms value is financed with debt?With equity?

13. In an attempt to balance the budget, Congress just increased the corporate income tax rate to 75%. How will most firms change their debt-equity (D/E) ratio in response to this? What will that D/E change probably do to personal taxes paid by investors (even if personal tax rates are unchanged)? What will that change in D/E do to bankruptcy costs?