Question: This is the question there is no more information Excel Onkine Structured Activity: Recaptal gation Currently, Forever Flowers inc. has a capital structure consisting of

 This is the question there is no more information Excel Onkine
Structured Activity: Recaptal gation Currently, Forever Flowers inc. has a capital structure
This is the question there is no more information

Excel Onkine Structured Activity: Recaptal gation Currently, Forever Flowers inc. has a capital structure consisting of 20% debt and 80% equity, Forever's debt currently has an 74 yield to maturity. The riskfree rate (ray) is 4%, and the market nik premium (ry - far) is BW. Using the CAPM, Forever estimates that its cost of equity is currently 11.5%4. The company hat a sow tax rate. The data has been cellected in the Microtof Excel Online file belowi Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermedate calculations. Open spreadthet 8. What is forever'i current WMCC Round your answer to two decimal ploces. b. What is the current beta on Forever's common stock found your answer tritwo decimal piaces. c. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unlevered beta, by?) Round your answer to two decimat places. a. What is Forever's current WACC? Round your answer to two decimal places. b. What is the current beta on Forever's common stock? Round your answer to two decimal places. c. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unievered beta, bu?) Round your answer to two decimal places. Forever's financial staff is considering changing its capital structure to 40% debt and 60% equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to 9.5%. The proposed change will have no effect on the company's tax rate. d. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round your answer to two decimal places. (3) 4 e. What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to two decimal places. 1. Based on your answer to part e, would you advise Forever to adopt the proposed change in capital structure? Excel Onkine Structured Activity: Recaptal gation Currently, Forever Flowers inc. has a capital structure consisting of 20% debt and 80% equity, Forever's debt currently has an 74 yield to maturity. The riskfree rate (ray) is 4%, and the market nik premium (ry - far) is BW. Using the CAPM, Forever estimates that its cost of equity is currently 11.5%4. The company hat a sow tax rate. The data has been cellected in the Microtof Excel Online file belowi Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermedate calculations. Open spreadthet 8. What is forever'i current WMCC Round your answer to two decimal ploces. b. What is the current beta on Forever's common stock found your answer tritwo decimal piaces. c. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unlevered beta, by?) Round your answer to two decimat places. a. What is Forever's current WACC? Round your answer to two decimal places. b. What is the current beta on Forever's common stock? Round your answer to two decimal places. c. What would Forever's beta be if the company had no debt in its capital structure? (That is, what is Forever's unievered beta, bu?) Round your answer to two decimal places. Forever's financial staff is considering changing its capital structure to 40% debt and 60% equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to 9.5%. The proposed change will have no effect on the company's tax rate. d. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round your answer to two decimal places. (3) 4 e. What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to two decimal places. 1. Based on your answer to part e, would you advise Forever to adopt the proposed change in capital structure

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