Question: Holding everything else constant, an increase in cash debt. the firm's net O will decrease O will have no impact on Owill increase O may

Holding everything else constant, an increase in cash debt. the firm's

Holding everything else constant, an increase in cash debt. the firm's net O will decrease O will have no impact on Owill increase O may increase or decrease Question2 1 pts Ephemeral is an all-equity firm with an estimated market value of $300,000. The firm sells $100,000 of debt and uses the proceeds to purchase outstanding equity. Compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity 0.2/0.8 0.25/0.75 0.67/0.33 0.5/0.5 Question 3 1 pts Your estimate of the market risk premium is 6%. The risk-free rate of return is 4.5% and General Motors has a beta of 1.6. What is General Motors' cost of equity capital? (Enter in decimal form. For example, enter .125 for 12.5%)

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