***please answer question 9 ONLY

QUESTION 7 Suppose Dell Inc is currently has a debt to equity ratio of 1:2. The cost of debt is 5%, the cost of equity is 16%, and the tax rate is 20% What is the WACC for Dell? (Hint: For DVE ratio of 12, you can assume MVD = 1 and MVE = 2 to do this calculation.) 12% 0 12.33% O 16% 10.2% QUESTION 8 Given Q7: If Dell had no debt and was 100% equity financed, what would the cost of equity (r_e)? (Answer in %. Ex for 6789 put 67 89%) 12.86% QUESTION 9 Given Q7 Next, suppose Dell wants to change its capital structure and move to a debt to equity ratio of 13 If the cost of debt remains the same, what is the new cost of equity for Dell? (Answer in %. Ex for 6789 put 67 89%)