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Given that the value of the equity after the debt issue will be $40 million, what will be the expected return on the stock after the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage sign as part of your answer. Enter your response below. 19.80 Correct response: 22.06+0.02 Given that the expected return on the stock after the debt issue will be 22.06%, what will be the weighted Average Cost of Capital after the debt issue? Do not enter the percentage sign as part of your answer. Enter your response below. Number Brealey Corporation is currently all equity financed and has a value of $75 million. Investors currently require a return of 15.5 percent on common stock. Brealey has a marginal tax rate of 30 percent. Brealey plans to issue $50 million of debt with a return of 8 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions rounded to two decim places. Enter your response below. 90 Correct response: 90+0.01million This question has 4 parts, so you will be clicking verify 4 times. Given that the value of the firm after the debt issue will be $90 million, what will be the value of the equity after the debt issue? Please state your answer in millions rounded to two decimal places. Enter your response below. 40 Correct response: 40+0.01 million Th Given that the value of the equity after the debt issue will be $40 million, what will be the expected return on the stock after the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage sign as part of your answer. Enter your response below. 19.80 Correct response: 22.06+0.02 Given that the expected return on the stock after the debt issue will be 22.06%, what will be the weighted Average Cost of Capital after the debt issue? Do not enter the percentage sign as part of your answer. Enter your response below Number Section Attempt 1 of 1

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