Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Darryl Inc. currently finances with 20.0% debt (I.e wd=20%), but its new CFO is considering changing the capital structure so WD equals 60% by issuing additional bonds and using the proceeds to re-purchase and retire common shares so the percentage of common equity in the capital structure WC equals 1- WD. Given the data shown below by how much would this recapitalization change the firms cost of equity? A. 2.7% b 5.99% C 3.95% D 3.45% E 4.5%

Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 13 percent while its cost of equity is 17 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.

Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 25 yr, the value is $177,774.94. Part: 0/2 Part 1 of 2 (a) Use the model A=Pe to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate is approximately %. X

In the world of mathematical finance, an important skill for any quantitative analyst is to price derivatives. These usually come in the form of options as well as other more exotic financial instruments. For this project we will focus on something called European Call options. We will see how you can estimate the price of an underlying asset (usually a stock) at some time in future T and use this to find how much an option should cost today. First, lets take a look at what a European call option actually is. The idea behind the European call option is that you will enter into a contract with someone that grants you the right, but not the obligation, to purchase some number of shares of a stock at a pre-determined price, called the strike price. In this paper we will say that the payoff for a European call option can be given by: max {S(t) – K, 0}. The reason we do this is because, it would not make sense to exercise the option if the price of the underlying asset is below the strike…