Using c++ Random Number Guessing Game Write a program that generates a random number between 1 and 100 and asks the user to guess what the number is. If the….
What is the present value of the tax shield?3 What is the size of debt?
Assuming that there is an unlevered firm and a levered firm. The basic information is given by the following table.
Table1: Information of the firms
|Unlevered firm||Levered firm|
|Tax (tax rate: 34%)|
Assuming that cost of debt =8%; unlevered cost of capital =10%; systematic risk of the asset is 1.5
1 Fill in the blanks
2 What is the present value of the tax shield?3 What is the size of debt?
4 Calculate the following values:
a) value of unlevered firm; b) value of the levered firm; c) equity value; d) Cost of equity; e) cost of capital; f) systematic risk of the equity
5 Suppose that the firm changes its capital structure so that the debt-to-equity ratio is 1.0, then recalculate the systematic risk of the equity