An all equity corporation has net income of $63,313and a required rate of return of 0.14%. What would the value of this firm be if it borrowed $141,848 to buy back some of its stock? Assume a corporate tax rate of 0.45%.

Suppose that MNINK industries' capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt.  If the before-tax component costs of equity, preferred stock, and debt are 11.60 percent, 9.5 percent, and 9 percent, respectively, what is MNINK's WACC if the firm faces an average tax rate of 21 percent and can make full use of the interest tax shield?

Cede & Co can borrow at 11 percent.  Cede currently has no debt, and the cost of equity is 12 percent.  The current value of the firm is $664,000.  The corporate tax rate is 30 percent.  Required:  What will the value be if Cede borrows $223,000 and uses the proceeds to repurchase shares?

Hawar International is a shipping firm with a current share price of $4.50 and 10 million shares outstanding. Suppose Hawar announces plans to lower its corporate taxes by borrowing $10 million and repurchasing shares. a. With perfect capital​ markets, what will the share price be after this​ announcement? b. Suppose that Hawar pays a corporate tax rate of 40%​, and that shareholders expect the change in debt to be permanent. If the only imperfection is corporate​ taxes, what will the share price be after this​ announcement? c. Suppose the only imperfections are corporate taxes and financial distress costs. If the share price rises to $4.55 after this​ announcement, what is the PV of financial distress costs Hawar will incur as the result of this new​ debt?       Question content area bottom Part 1 a. With perfect capital​ markets, what will the share price be after this​ announcement?   With perfect capital​ markets, the share price will be ​$enter your response here per share