Question: Round your final answer to 4 decimal places. Only accept hand-written assignment. Use pen and paper, ipad or tablet, save as pdf file and

Round your final answer to 4 decimal places. Only accept hand-written assignment.

Round your final answer to 4 decimal places. Only accept hand-written assignment. Use pen and paper, ipad or tablet, save as pdf file and upload. Question 2 BBC Inc. currently has 850 shares outstanding, selling at $16 per share. Its 9% annual coupon, perpetual debt has a par value of $8,000 and is trading to yield 8%. The annual EBIT is expected to be $4,000 forever. The present value of bankruptcy costs is $0. The tax rate is 25%. A. What is the unlevered firm value? B. What is the unlevered cost of equity? C. What is the cost of equity? D. What is the weighted average cost of capital? E. Recalculate parts A, B, C, and D if the present value of the bankruptcy costs is $1,470.

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