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  3. 2. help,please! q2 (20 marks) a) the win-win c

2. Help,please! Q2 (20 marks) a) The Win-Win company a major...

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Accounting

2. Help,please!
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Q2 (20 marks) a) The Win-Win company a major manufacturer of fitness products has a perpetual expected EBIT of $500,000. The interest rate for Win-Win's debt is 7.5%. The D/E ratio is 0.33 and WACC is 11%. What is the cost of equity capital for Win-Win? (8 marks) b) Suppose corporate tax rate is 30%, and Win-Win has $600,000 in debt outstanding. If the unlevered cost of equity is 16%, what is the value of this company? What is the value of the firm's equity? (8 marks) c) How do you differentiate financial risks with business risks of a company

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