PT. 1

PT 2.

PT. 3

Using the information below, what will be the cost of capital for this firm's operating assets if it changes its current D/E to the new D/E indicated below. Assume the firm operates in perfect capital markets. Enter your answer as a percent %; round your final answer to two decimals. 0.32 Current D/E re 14% 8% rp New D/E 0.61 D/(D+E) E/(D+E) Current ra New YA Given the information below, what will be this firm's cost of equity capital if it changes its current D/E to the new D/E indicated below? Assume the firm operates in perfect capital markets. Enter your answer as a percent without the % sign; round your final answer to two decimals. Current D/E 0.5 re 16% New D/E 8% 0.72 D/(D+E) E/(D+E) ra New re Given the information below, what will be this firm's equity beta if it changes its current D/E to the new D/E indicated below? Assume the firm operates in perfect capital markets and that its debt is risk free. Round your final answer to two decimals. 0.370 1.913 D/E PE BA New D/E 1.396 0.760 New Be