Question: I have 2 finance questions 1) (Please insert the answer in decimal form and round it to three decimal places if needed; for example:5.43% should

I have 2 finance questions

(Please insert the answer in decimal form and round it to three decimal places if needed; for example:5.43% should be inserted as 0.054).If the value of a firm is $986,788, the value of its debt is $447,294, the after-tax cost of debt is 7% and the overall cost of capital (WACC) is 10%, what is the cost of equity for this firm?

Correct Answer:0.125

2) (Please ignore the $ sign when you insert your answer and round your answer to two decimal places if needed).If next year's core RONA₁is expected to be equal to this year's core RNOA₀of 11%. If this year's NOA₀is$371,739 and the cost of capital is 7%, what is next year's expected operating income?

Correct answer: 40,891.29 1

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