Hallmark, the greeting card company, is considering going online. It is anticipated that it will cost the firm RM 1 billion to do so and that the firm will be able to use its current debt capacity to borrow 20% of this investment, at an after-tax cost of 4.5%. Hallmark has a beta of 1.1. Online retailers have a beta of 1.50 and do not carry debt. If the riskless rate is 6% and the market risk premium is 5.5% estimate the cost of capital for the online investment

8)Glassmakers has the below characteristics. The premerger debt is $5, the premerger equity is $10. The risk free rate is 6%. The premerger beta is 1.36. The tax rate is 40%. The cost of debt premerger is 11%. The expected market rate of return is 10%. What discount rate should you use to discount Glassmakers' free cash flows and interest tax savings?     10.01% 10.06% 11.29% 11.44% 13.49%

Sweetness Inc. produces a line of chocolate candies and has an optimal capital structure that is 50% debt and 50% equity.  Sweetness has a beta of 1.2 and is considering expanding into the appetizer business.  Sweetness’ primary competition in the appetizer business has a beta of 1.5 and a 40%/60% debt/equity mix.  If the risk-free rate is 7%, the market risk premium is 8.5%, and the marginal tax rate is 40%, what is the cost of the equity-financed portion of Sweetness’ new investment

Sub : FinancePls answer  very fast.I ll upvote. Thank You An all-equity company decides to recapitalize. The company has an unlevered beta of 1.1, the market risk premium is 6% and the risk-free rate is 5%. The company's tax rate is 25%. If the company starts to borrow with a 25% debt ratio, what will be the levered beta using Hamada’s equation? What is the cost of equity before and after the recapitalization respectively? Why is the cost of equity higher after the recapitalization?