Question: Optimal Capital Structure with Hamada borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the

Optimal Capital Structure with Hamada borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 11%. BEA has a beta of 1.0 . b. What are BEA's new beta and cost of equity if it has 35\% debt? Do not round intermediate calculations. Round your answers to two decimal places. Beta: Cost of equity: % c. What is BEA's WACC with 35% debt? Do not round intermediate calculations. Round your answer to two decimal places. % 1,234,000. Round your answer to three decimal places. $ million

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