Following five problems

Current Wd $30\%$ Tax rate $30\%$

Structure Ws $70\%$

WACC $12\%$

Other Rf $5\%$ Tax rate $30\%$

Factors Market Risk Premium $8\%$

What is the current beta?

Group of answer choices

$1\mathrm{.}000$

$0\mathrm{.}813$

$0\mathrm{.}700$

$1\mathrm{.}600$

What is the unlevered beta?

Group of answer choices

$1\mathrm{.}231$

$0\mathrm{.}538$

$0\mathrm{.}625$

$0\mathrm{.}769$

As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio $($D$/$E$)$ to $1\mathrm{.}5.$ What is the levered beta of the target capital structure?

Group of answer choices

$2\mathrm{.}523$

$1\mathrm{.}104$

$1\mathrm{.}281$

$1\mathrm{.}577$

As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio $($D$/$E$)$ to $1\mathrm{.}5.$ What is the cost of equity of the target capital structure?

Group of answer choices

$25\mathrm{.}18\%$

$13\mathrm{.}83\%$

$15\mathrm{.}25\%$

$17\mathrm{.}62\%$

As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio $($D$/$E$)$ to $1\mathrm{.}5.$ What is the estimated cost of capital of the target capital structure with the average default spread is $2\mathrm{.}7\%?$

Group of answer choices

$13\mathrm{.}31\%$

$8\mathrm{.}77\%$

$9\mathrm{.}33\%$

not enough information