Question: Need help, please Q#2. Branson Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 11 percent, and its pretax cost of

Need help, please Q#2. Branson Manufacturing has a target debt-equity ratio of Need help, please

Q#2. Branson Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 11 percent, and its pretax cost of debt is 6 percent. If the tax rate is 21 percent, what is the company's WACC? Q#3. Fama's Llamas has a WACC of 8.4 percent. The company's cost of equity is 11 percent, and its pretax cost of debt is 5.8 percent. The tax rate is 25 percent. What is the company's target debt-equity ratio? Q#4. Why is the use of debt financing referred to as using financial "leverage"? Q#5. Explain what is meant by business and financial risk. Suppose Firm A has greater business risk than Firm B. Is it true that Firm A also has a higher cost of equity capital? Explain

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