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?

What is the unlevered beta?

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 1.5. What is the levered beta of the target capital structure?

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 1.5. What is the cost of equity of the target capital structure?

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 1.5. What is the estimated cost of capital of the target capital structure with the average default spread is 2.7%?

Answer rating: 100% (QA)

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