Question: Question 15: Java Construction Inc. has debt with both a face and a market value of $28,000.This debt has a coupon rate of 7% and
Question 15: Java Construction Inc. has debt with both a face and a market value of $28,000.This debt has a coupon rate of 7% and pays interest annually. The expected earnings before interest and taxes is $12,500, the tax rate is 21%, and the unlevered cost of capital is 10%What is the value of the levered firm? Answer without decimal places and without a sign.Question 16: Cairo Corp. has a corporate tax rate is 21%.Its cost of equity would be 11% if it had no debt and its cost of debt is 7%.What debt-to-equity ratio will give the firm a levered cost of equity of 13%? Answer in X.XX% format without the percentage sign, so X.XX.Question 17: Windhoek Corp. has a corporate tax rate is 21% and debt-to-equity ratio of 1.50.Its cost of equity would be 10% if it had no debt and its cost of debt is 8%.What is its current cost of equity? Answer in X.XX% format without the percentage sign, so X.XX.
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