Short Answer Question 2 (Total 10 marks) Simpson Ltd is an all-equity financed clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. its cost of equity is presently 12% per annum. Suppose that Simpson announces a restructuring plan to borrow $100 million at an interest rate of 7%6 p.a. and using the c) Under the same assumption of Part a), what is the cost of equity of the co might influence the beta of equity. ( 3 marks) announcement is made. ( 2 marks) Under the same assumption of Part d), calculate the D/E ratio of Simpson Ltd immediately after the restructuring plan is completed. (1 mark)