Question: Q4 - please help Question 4 5 pts Afirm's current capital structure consists of 50 percent debt and 50 percent common stock The fruns before

Q4 - please help

Q4 - please help Question 4 5 pts Afirm's current capital structure

Question 4 5 pts Afirm's current capital structure consists of 50 percent debt and 50 percent common stock The fruns before tax cost of debt is 6 percent, its tax rate is 40 percent and its cost of Common stock s 11 percent based on CAPM. Further, the risk-free rate is 4 percent and that the market risk premium is 5 percent . Calculate the firm's new weighted average cost of tapitalit it changes to a capital structure of 20 percent debt and the balance is equity. 078225 078375% 07.9250% 0233008 9.751505

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