Question: i need help with this 2 question QUESTION 9 Bluegrass Mint Company has a debt-equity ratio of 0.35. The required return on the company's unlevered
QUESTION 9 Bluegrass Mint Company has a debt-equity ratio of 0.35. The required return on the company's unlevered equity is 14.6% and the pretex cost of the firm's debt is 68. Sales revenue for the company is expected to remain stable indelinkely at last year level of $21,867.7876. Variable costs amount to 57% of sales. The tax rate is 239 and the company distributes all its earnings as dividends at the end of each year Use the WACC to compute the value of the company NOTE: Enter the number rounding to four DECIMALS. If your decimal answer is 0.034576, your answer must be 0.0346, DO NOT USE the sin QUESTION 10 Bluegrass Mint Company has a debt equity of Ox7 The requved return on the company's revered equity is 14, and the pretax cost of the firms debts Sales revenue for the company is expected to remain table indefinitely at last years level of $19,592.615.7 Variable costs amount to 576 of sales. The tax rate is 39 and the company distributes all its earnings as dividends at the end of each year What would be the value of debt? HINT: Use the WACC to compute the value of the company and then determine the amount of debt NOTE: Enter the number rounding to four DECIMALS. If your decimal answer is 0.034576, your answer must be 0.0346. DO NOT USE the sun
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