Question: Please show equations and work as needed. Also make the answer clear. Thank You. The clothing company 2The9z Inc. has a debt-to-equity ratio of 2,
Please show equations and work as needed. Also make the answer clear. Thank You.


The clothing company 2The9z Inc. has a debt-to-equity ratio of 2, an equity beta of 2, and its bonds have a yield to maturity of 6%. Assume the risk-free rate is 4%, the market expected return is 12%, and the corporate tax rate is 25%. What is the firm's WACC? 9.66% O 7.43% 8.89% O 8.59% You own a private company that is financed with 80% equity and 20% debt. Your evil twin runs a nearly identical company which is financed with 50% public equity and 50% debt. From stock returns, you calculate that the beta of the stock of the company run by your twin is 1.5. Estimate the return you should expect from your equity. Assume the tax rate is 35%, the risk free rate is 4%, and the market risk premium is 6%. O 12.33% 11.67% 9.67% 10.34%
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