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QUESTION TWO (20 Marks) a) Following the financial reports for Burke Corporation, its leverage is...

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QUESTION TWO (20 Marks) a) Following the financial reports for Burke Corporation, its leverage is worth $28,200 of which the debt amounts to $15.000. The unlevered cost of capital is 25% and interest rate is 12%. The annual free cash flow is $10,000 and corporate tax is 35%. Using the Excel software to compute the firm's cost of equity, Ke (6 Marks) the weighted average cost of capital (WACC). (1 Mark) 1 11

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