Question: Some help and explanation will be great. Question IV: (20 Points) Please assume that the risk-free rate is 5%, the risk-premium is 10%, and tax

Some help and explanation will be great. Question IV: (20 Points)

Some help and explanation will be great.

Question IV: (20 Points) Please assume that the risk-free rate is 5%, the risk-premium is 10%, and tax rate of 0% ABC Inc. MVBS MBBS A L A L C= D= 600 0.0 0.4 400 600 Bc B EV = BD = BE = EV= E= 400 MVA = 1,000 MVL = 1,000 BA= BL= Given the ABC Inc's Market Value (left) and Market Beta (right) Balance Sheets above, please fill in the blanks in the MBBS for B A B L and BE. Question IV: (20 Points) Please assume that the risk-free rate is 5%, the risk-premium is 10%, and tax rate of 0% ABC Inc. MVBS MBBS A L A L C= D= 600 0.0 0.4 400 600 Bc B EV = BD = BE = EV= E= 400 MVA = 1,000 MVL = 1,000 BA= BL= Given the ABC Inc's Market Value (left) and Market Beta (right) Balance Sheets above, please fill in the blanks in the MBBS for B A B L and BE

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