Finance Assignment | Professional Writing

6. Determining the optimal capital structure Aa Aa E Understanding the optimal capital structure Review this situation: Universal Exports Inc. is trying to identify its optimal capital structure. Universal Exports Inc. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio 30% 70% 40% 60% 50% 50% 60% 40% 70% 30% re 6.02% 6.75% 7.15% 7.55% 8.24% r s 9.40% 9.750% 10.60% 11.30% 12.80% WACC 9.71% 9.55% 10.02% 10.78% 11.45% Which capital structure shown in the preceding table is Universal Exports Inc.’s optimal capital structure? Debt ratio = 40%, equity ratio = 60% Debt ratio = 60%, equity ratio = 40% Debt ratio = 70%; equity ratio = 30% Debt ratio = 50%; equity ratio = 50% Debt ratio = 30%, equity ratio = 70% Consider this case: Globex Corp. has a capital structure that consists of 35% debt and 65% equity.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Homework Cheat Websites

The firm’s current beta is 1.25, but management wants to understand Globex Corp.’s market risk without the effect of leverage. If Globex Corp. has a 40% tax rate, what is its unlevered beta? O 0.80 O 0.75 O 0.94 O 0.99 Now consider the case of another company: U.S. Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before-tax cost of debt is 10%, and its tax rate is 40%. It currently has a levered beta of 1.25. The risk-free rate is 3%, and the risk premium on the market is 8%. U.S. Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm’s level of debt will cause its before-tax cost of debt to increase to 12%. First, solve for U.S. Robotics Inc.’s unlevered beta. Relever U.S. Robotics Inc.’s beta using the firm’s new capital structure. Use U.S. Robotics Inc.’s levered beta under the new capital structure, to solve for its cost of equity under the new capital structure. What will the firm’s weighted average cost of capital (WACC) be if it makes this change in its capital structure? O 12.7% 9.8% 11.5% 7.5%

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Home Repair & Home Maintenance
Good job!
Customer 463337, November 21st, 2022
Customer 463647, December 22nd, 2022
Marketing & Advertising
Well written and researched. Looking forward to working with you in future.
Customer 463473, November 10th, 2022
Excellent job
Customer 456821, May 3rd, 2022
Excellent work.
Customer 459155, June 7th, 2022
I am glad you did the corrections properly. Good work.
Customer 463679, February 9th, 2023
Be keen on instructions.
Customer 460653, April 6th, 2022
thank you very much
Customer 462327, September 22nd, 2022
Properly format papers in the instructed style and always use Grammarly.
Customer 458101, April 10th, 2022
excellent paper
Customer 456821, January 14th, 2023
Paper is great but I had to turn in past my deadline.
Customer 463301, October 1st, 2022
Excellent work.
Customer 453187, July 5th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat