Question: Required: 1. Evaluate the different nancing options and create a brief report on the costs associated with each, as well as a table clearly showing


Required: 1. Evaluate the different nancing options and create a brief report on the costs associated with each, as well as a table clearly showing the expected net profit under each nancing option. 2. Evaluate the implied cost of equity by way of the releyered beta (after renancing} us'tng Hamada's equation for each of the four nancing options. Assume the current beta for the company is 2.5. Structure your nal answer into a table {that is, place the unleyered beta and re-leyered beta in a table next to the cost of equity for each option}. 3. Eyatuate the current capital structure as well as all three nancing options by calculating the WAGE of each option based on the cost of equity obtained in 2}. 4. Calculate the debt ratio, times interest earned ratio and degree of nancial leverage under each option. Drawing from your earlier calculations also, draw a conclusion {taking risk, exibility, protability and control into account} regarding which nancing source you would recommend. Keep your report to a maximum of one page and clearly number your calculations
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