1-A firm has a cost of debt of 5.8

percent and a cost of equity of 10.5 percent. The debt–equity ratio is

.54. There are no taxes. What is the firm’s weighted average cost of

capital? a-9.32% b-7.38% c-8.85% d-8.17% e-7.97% 2- Gulf Shores Inn is comparing two

separate capital structures. The first structure consists of 265,000

shares of stock and no debt. The second structure consists of 210,000

shares of stock and $1.50 million of debt. What is the price per share

of equity? a-$31.17 b-$33.57 c-$28.57 d-$27.27 e-$35.243-The Tree House has a pretax cost of

debt of 6.2 percent and a return on assets of 10.6 percent. The

debt–equity ratio is .40. Ignore taxes. What is the cost of equity? a-12.98% b-8.84% c-12.76% d-12.36% e-13.48%4- Room and Board is considering two

capital structures that have a break-even EBIT of $18,000. The

all-equity capital structure would have 13,500 shares outstanding. The

levered capital structure would have 10,000 shares of stock and $75,000

of debt. What is the interest rate on the debt? Ignore taxes. a-5.58% b-7.11% c-6.22% d-6.52% e-5.91%5- Kelso

Electric is an all-equity firm with 51,500 shares of stock outstanding.

The company is considering the issue of $350,000 in debt at an interest

rate of 8 percent and using the proceeds to repurchase stock. Under the

new capital structure, there would be 32,000 shares of stock

outstanding. Ignore taxes. What is the break-even EBIT between the two

plans? a-$63,385 b-$80,111 c-$45,949 d-$73,949 e-$51,6926- A firm is considering two different

capital structures. The first option is an all-equity firm with 37,500

shares of stock. The levered option is 25,400 shares of stock plus some

debt. Ignoring taxes, the break-even EBIT between these two options is

$52,400. How much money is the firm considering borrowing if the

interest rate is 7.2 percent? a-$210,694 b-$223,088 c-$246,012 d-$234,830 e-$268,3777- Malkin Corp. has no debt but can borrow at 7.25 percent. The firm’s WACC is currently 13 percent, and there is no corporate tax.What is the company’s WACC in parts (b) and (c)? (Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.) WACC 15 percent % 60 percent %8- Debbie’s Cookies has a return on

assets of 8.7 percent and a cost of equity of 13.1 percent. What is the

pretax cost of debt if the debt–equity ratio is .81? Ignore taxes. a-2.97% b-3.78% c-3.63% d-3.27% e-3.45%

##### “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

We offer homework writing services with you in mind. Our homework help service is made to meet your demands, whatever the challenge. Every paper is written from scratch by experts in your field. You can order essays, discussion, article critique, coursework, projects, case study, term papers, research papers, reaction paper, movie review, research proposal, capstone project, speech/presentation, book report/review, annotated bibliography, and more.

**STUCK with your assignments? Hire Someone to Write Your papers. 100% plagiarism-free premium quality work Guarantee**